Question $2(3$ points$)$

By making an operating budget:

you can justify buying big$-$ticket items if you can pay these items out in installments.

you can see how fast some small luxuries can add up and can put these expenses in perspective enabling you to make better purchase decisions.

you can see how much you can spend after paying your loan payments.

you will not need a cash cushion because you have covered your expenses for the month.