During your meeting with your new client Yvonne Smith she mentions that she has never had a budget and doesn't really understand what a budget is for or how to prepare one. Explain why a budget is important and using the figures below do a budget for one month.(3 marks)

You have collected the following information from Yvonne for the year ending 30/6/2020:

• Bank interest received $12
• Car fuel & maintenance $3,500
• Health insurance $2,400
• Car loan $21,000
• Car depreciation $2,600
• Yvonne's salary after tax $85,000
• Rent $35,800
• Food $16,000
• Electricity $1,200
• Clothes $2,200
• Travel $21,000