Your friend has prepared his monthly budget and asks you if he has overlooked anything in his planning. Which of the following questions points out his most serious omission?

\begin{tabular}{|c|c|c|}
\hline
& & \\
\hline
& Cash Inflows & \\
\hline
Disposable income & [tex]$\$[/tex] 4,165[tex]$ & \\
\hline
Interest on savings & $[/tex]\[tex]$ 0$[/tex] & \\
\hline
Income from stocks & [tex]$\$[/tex] 50[tex]$ & \\
\hline
Total Cash Inflow & $[/tex]\[tex]$ 4,215$[/tex] & \\
\hline
& & \\
\hline
& Cash Outflows & \\
\hline
Mortgage & [tex]$\$[/tex] 1,000[tex]$ & \\
\hline
Homeowner's Insurance & $[/tex]\[tex]$ 60$[/tex] & \\
\hline
Car payment & [tex]$\$[/tex] 373[tex]$ & \\
\hline
Car insurance & $[/tex]\[tex]$ 125$[/tex] & \\
\hline
Stock purchases & [tex]$\$[/tex] 200[tex]$ & \\
\hline
Life and health insurance & $[/tex]\[tex]$ 150$[/tex] & \\
\hline
\end{tabular}



Answer :

Your friend's monthly budget is missing an important category: "Living Expenses (food, utilities, etc.)." The question pointing out his most serious omission is:

12. Living Expenses (food, utilities, etc.)

Including a category for daily living expenses is crucial for maintaining a complete and realistic budget. These expenses typically represent a significant portion of one's monthly outflows and without accounting for them, the budget might fall short, leading to potential financial difficulties.