Donnie is considering purchasing a new television and gaming system. He doesn't have enough saved to pay cash for the electronics. What is the important factor Donnie should consider before making the purchase?

A. Whether the purchase price reflects the best deals currently available.

B. Whether he can afford the monthly payment being offered by the retailer based on his current budget.

C. How much discretionary income he has and whether he should adjust his fixed expenses to budget for the purchase.



Answer :

Final answer:

Donnie should consider his discretionary income before making the purchase by evaluating available funds post essential expenses. Assessing areas to cut back on expenses and aligning the purchase with his budget is essential for Donnie to afford the electronics.


Explanation:

Donnie should consider how much discretionary income he has before making the purchase. This involves evaluating his available funds after accounting for necessary expenses and deciding if adjustments need to be made to accommodate the new purchase.

An example could be Donnie analyzing if he can cut back on non-essential expenses like subscriptions or reduce spending in certain areas to increase his available funds for the purchase. By assessing his discretionary income, he can make an informed decision on whether to proceed with buying the electronics.

Considering his current budget and determining if adjustments to fixed expenses are necessary can help Donnie ensure that he can afford the purchase within his financial means.


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