Michael struggled with finances, often running out of money before payday. To address this, he created a budget, listing his income and expenses. Realizing his expenses exceeded his income, he cut back on non-essential spending like dining out and movies. This adjustment allowed him to save money and pay bills on time. By following his budget closely, Michael improved his financial situation and felt more secure.

Why did Michael decide to create a budget?

• To save money for a vacation

• To see if it would help him pay his bills on time

• To buy a new car

• To invest in stocks

What did Michael do first when creating his budget?

• He paid off his debts

• He cut down on his expenses

• He asked for a loan

• He wrote down his monthly income

What did Michael realize after analyzing his expenses?

• He was saving too much money

• His income was higher than his expenses

• His expenses were higher than his income

• He had no unnecessary expenses

Which expenses did Michael cut to balance his budget?

• Insurance and medical bills

• Eating out and movie tickets

• Groceries and transportation

• Rent and utilities

How did Michael handle overspending in one budget area?

• He ignored it

• He borrowed money

• He asked for a raise

• He cut from another budget area

What was the outcome of Michael following his budget?

• He spent more than before

• He still ran out of money

• He had enough money to pay all his bills on time

• He had to take a loan