Jane has always made budgets for herself. She plans her expenses according to her budget. However, despite creating plans, some unforeseen circumstance often puts her off the budget. Which course of action should Jane follow to prepare herself for unforeseen circumstances and stay on a budget?

A.

follow the plan strictly at any cost

B.

create an emergency fund

C.

follow the same plan

D.

tweak her financial goals

E.

create a new plan similar to the original one

B. Create an emergency fund.

Explanation:

All plans are subject to events that are predictable (example: the payment of a montly suscription I made for a specific magazine) and unpredictable (for example, lossing our job and, consequently, our salary). When we made a plan for our expenses and incomes, we should take into account all the items we know with certainty (a fixed rent, fixed or expected expenses, etc), and have a contingency plan in case of unforeseen circumstances. Then, creating an emergency fund is a smart decision to prevent incidentals and to be able to overcome this circumstances without being severely affected when we face an expense we have not prevent.