Which of the following is a potential benefit of budgeting?

The potential benefit of budgeting is improved financial stability. Budgeting allows individuals to track their income and expenses, enabling them to allocate their resources effectively and make informed financial decisions. By setting aside money for necessary obligations, savings, and discretionary spending, a budget can help ensure that one does not overspend or live beyond their means. This structured approach can lead to better control over financial situations, reduce stress related to money management, and create a pathway towards achieving long-term financial goals, ultimately resulting in greater stability.

While increased debt, higher spending, and less savings are outcomes that could result from not budgeting, they demonstrate the importance of maintaining a budget to prevent such negative consequences. Budgeting is a proactive approach that helps individuals manage their finances prudently, encouraging responsible spending and saving habits.