Which of the following should NOT be considered when setting a current budget?

A. Savings

B. Needs and wants

C. Future income

D. Your financial goals

Answer

The answer is C. Future income.

Explanation:

When setting a current budget, it is essential to consider your current financial situation, including your savings, needs and wants, and your financial goals. These elements help to create a realistic and effective budget based on what you have at present and what you aspire to achieve within foreseeable limits.

However, future income should not be a core consideration in setting a current budget. This is because budgeting should primarily be based on income that is currently available or reliably predictable. Future income is uncertain and may fluctuate due to various factors such as job stability, market conditions, and personal circumstances. Relying on uncertain future income can lead to overextending your budget and potentially causing financial problems. Therefore, while future income may influence long-term financial planning, it should not be a factor in creating a current budget.