A budget is a spending plan. It can help you spend your money wisely. It can do this by cutting out wasteful spending. Of course, preparing a budget takes planning, and following a budget takes will power. Your budget should meet your family’s needs and incomes.
The first step in creating a budget is to set your goals. What does your family need and want? You must know this to work out the details of the budget. Keep goals realistic, in terms of income available. Then decide which goals are the most important.
The next step is estimating family incomes. Before you can plan wisely, you need to know how much money you have to spend. Write down all the money you can make during the planned budget period.
After you have calculated how much money will be available, it is time to estimate expenses. List all of your family expenses. If you are not satisfied with what you got for your money, look carefully at your spending. Studying your records will show where overspending has occurred. It will also point out poor buying habits.
It is also a good idea to set aside a small amount of money for emergencies. Every family has small emergencies: a blown tire, a broken device, or the need for minor medical care.
21. According to the passage, what is the advantage of a budget? It can help you ______.
A. set your goals clearly
B. save a lot of money
C. get rid of poor buying habits
D. spend money in a reasonable way
22. In carrying out your budget, you need ______.
A. to have the ability to control your will
B. to ask your family members for advice
C. to cut down as much as possible
D. to take care not to buy expensive things
23. According to the passage, which of the following statements is TRUE?
A. In creating a budget, the first step is to find out how much you can earn.
B. When planning your spending, both incomes and needs should be taken into account.
C. With a budget, all family goals can be achieved.
D. In your budget, the estimated incomes should be exactly the same with expenses.
24. The writer suggests that it is a good idea to set aside some money because ______.
A. you probably will not be able to follow your budget
B. people usually spend more money than they plan to do
C. things may happen unexpectedly
D. others may want to borrow money from you
25. The passage is mainly about ______.
A. the meaning of a budget
B. the relationship between budget and income
C. the way a budget is made
D. the importance of making a budget