Section 1

Lesson 2 Summary

 

In this lesson you examined how a review of several months of expenses and income is an integral part of creating a budget. These expenses are first grouped into categories, and then an average is calculated for each category. For a conservative budget that builds in savings, the averages for expenses are overestimated and any variable income is underestimated.

 

Setting up a conservative budget will help you realize your financial goals and help you live within your means.