Pick the correct statement about adding your income to your budget.

CHOOSE 1
If your only income is the monthly salary you are earning, you will just add your take-home pay after taxes and deductions to your budget

You can't include the income you earn from rental property or assets in your budget

When you earn income from commission, always add your total expected commission to your budget income

If you expect to earn a bonus or 13th cheque, always include this in your budget

There are no correct statements. All statements are incorrect

1 answer

The correct statement is:

If your only income is the monthly salary you are earning, you will just add your take-home pay after taxes and deductions to your budget.

This statement is correct because budgeting typically involves using the net income figure, which is the take-home pay after taxes and deductions, as it represents the actual amount of money available for spending and saving.

The other statements contain inaccuracies or are not universally applicable. For instance:

- You can include the income you earn from rental property or assets in your budget.
- When you earn income from commission, it is often better to use a conservative estimate rather than the total expected commission.
- If you expect to earn a bonus or 13th cheque, it is prudent to either not include it or allocate it separately for savings or specific expenses, as this income is not guaranteed.