What is the first step in creating a budget?

• Splurging on luxuries

• Listing your bills and needs

• Ignoring your income

• Forgetting about savings

How can you avoid common budgeting mistakes?

• By tracking expenses and adjusting the budget as needed

• By not tracking your spending

• By overestimating your income

• By ignoring your savings goals

It is important to track both your income and expenses

• True

• False

What should you do if your expenses exceed your income?

• Apply for a new credit card

• Continue spending as usual

• Increase your bills and needs

• Cut unnecessary expenses and review your budget

All expenses are fixed and do not change from month to month

• True

• False