Answer:
Make sure expenses are below income.
Explanation:
So lets go over what a budget is.
A budget is a limitation put on the amount of money spent.
The point of a budget is to not spend too much money, ie, not spend more than you get.
Lets look at the answe options and see which one is closest to this:
Reduce the size of fixed expenses.
This is reducing the cost of something.
This is not what budget does, true it saves you money, like reducing the size of fixed expenses, but it does it differently.
A budget limits the money you spend, saving you money by not spending more money.
A reduction of the fixed expenses saves you money by reducing the cost of something.
This isnt it.
Earn return on savings.
Earning something in general has nothing to do with budget.
Basically a simple way of putting it is budget reduces spending, and has no effectt of earnings.
This increases earning, with no regards to spending.
So this is not it either.
Prevent discretionary spending.
This is basically preventing spending money on uneccesary things.
Although it may sound like this could be it, since it reduces spending money, and has no effect on earnings, it isnt 100% accurate.
A budget doesnt mean that you cannot spend money on wants rather that needs, but restricts the amount or specifics of your wants or needs.
So again, this is not it,
Lastly we have expenses below income.
This is the purpose of budget.
Budget makes it so you do not spend more than you earn.
It limits the amount of money you spend, so no matter what you can not spend more than what you restrict your budget to.
Hope this helps!
