A budget is a report that helps achieve financial goals. A cash budget is a valuable money management tool that helps you: - Maintain information to monitor and control your finances - Decide h your income to reach your financial goals - Implement a system of disciplined spending, as opposed to just existing from paycheck to paycheck - Reduce needless spending, so you can increase the funds allocated to savings and investments - Achieve your long-term financial goals - Maintain the necessary information to monitor and control your finances - Decide how to allocate your income to reach your financial goals - Implement a system of disciplined spending, as opposed to just existing from paycheck to paycheck - Reduce needless spending, so you can increase the funds allocated to savings and investments - Achieve your long-term financial goals Aspects of budgeting The following statements describe various aspects of budgeting. Indicate whether each statement is true or false. True or False: When estimating income, include amounts that you can control, like bonuses and rental income. True False True or False: When estimating expenses, developing an amount that one can live within is the best approach. True False True or False: To finalize the budget, compare projected income to projected expenses. When income equals or exceeds total expenses, it is considered a balanced budget. True False True or False: To remedy a short-term budget surplus, shift additional income to a month where a deficit exists. True False True or False: In situations where an annual budget deficit exists, cutting expenses from the budget is optimal. True False Budgeting Examples For each of the following scenarios, indicate whether the individual made a correct choice or an incorrect choice when preparing a budget