Which statement is true? Points: 1 The surplus cash flow method differs from the envelope method of budgeting because it sets no limits on individual expense categories. Individuals tend to be overly optimistic in their budget forecasts primarily because they underestimate their income and overestimate their expenses. The envelope method of budgeting relies on the use of cash only for certain types of expenses. The pay yourself first budgeting method requires you to pay all outstanding bills before determining whether excess funds are available for savings.