Question

It is always advisable to allocate while budgeting.

• A. an emergency fund
• B. an extra fund
• C. expenses
• D. income

Answer 1

The correct option is A an emergency fund

Keeping an emergency fund is essential while budgeting as one may encounter unforeseen circumstances that could pose poblems, like losing one's job unexpectedly or a global pandemic. One way to split an income is by using the 50-30-20 rule of budgeting.