Question

Fran recently got her first job. Now she's constructing her first budget of personal expenses. Which source of income data should she use to estimate future income?

(1 point)

after-tax income

Odiscretionary income

Oadjusted income

income from real estate sales

Answer 1

Fran should use after-tax income to estimate her future income for budgeting. This is the amount of money she will actually take home after taxes are deducted from her paycheck. This is the most accurate representation of her income that she can use for budgeting purposes.