Which of the Following Should Not Be Considered When Setting a Current Budget?

Creating a solid budget is one of the smartest decisions you can make for your financial well-being. Whether you’re budgeting for your household, a small business, or just your personal expenses, knowing what to include—and what to leave out—is key. So, if you’ve ever asked yourself, “Which of the following should not be considered when setting a current budget?” you’re not alone.

Let’s break it all down in simple terms and look at how to build a budget that truly works without getting sidetracked by unnecessary factors.

Understanding What a Budget Really Is

At its core, a budget is just a plan—your game plan for how to spend and save your money. Think of it like a roadmap for your money: it tells you where you’re going, how much gas (money) you have, and whether you need to stop for snacks (fun spending) along the way.

But here’s the thing—every roadmap needs the right landmarks. And that’s exactly why understanding which of the following should not be considered when setting a current budget is so important. Including the wrong details can detour you off course and mess up your financial goals.

What Should Be Included in a Current Budget?

Let’s start with the criteria you should absolutely include when building your budget. For most people, these are the primary components:

Monthly income: This includes your salary, business revenue, freelance work, and passive income like investments or rental income.
Fixed expenses: These are regular costs like rent or mortgage payments, cell phone bills, insurance premiums, and car payments.
Variable expenses: These fluctuate each month, such as groceries, gas, electricity bills, and eating out.
Savings and investments: Your monthly contributions to savings accounts, retirement funds, and emergency funds.
Debt payments: Student loans, credit cards, and other ongoing monthly repayments.

All of these are essential elements for crafting a budget that actually reflects your real financial situation. Including them ensures that you’re in control and not blindsided by overlooked obligations.

Common Mistake: Including Irrelevant Factors

Now let’s talk about the twist in the question: Which of the following should not be considered when setting a current budget?

It’s easy to think that future income, speculative investments, or “what-if” scenarios should factor into your current plan. But these can actually cause more harm than help.

Here are some examples of what not to include:

Estimated future raises or promotions: It might be tempting to factor in that raise you think you’ll get next quarter, but it hasn’t happened yet. Budget for what you earn now, not what you hope you’ll earn later.
Potential inheritance: Planning based on money you might get someday is risky and unrealistic.
Lottery winnings or gambling outcomes: This one’s pretty obvious, but it’s worth repeating—don’t count on luck when creating your budget.
One-time windfalls: A tax refund or bonus is great, but it shouldn’t be part of your steady budget. It’s better to treat it as a surprise boost than a regular income.

The bottom line? Your budget should be based on your current, reliable income and expenses. Anything outside of that belongs in long-term planning, not your day-to-day or monthly budget.

Why Relying on Uncertain Income Is Dangerous

Have you ever counted your chickens before they hatched? That’s exactly what happens when you include uncertain income into your budgeting process.

Let’s say you’re expecting a $5,000 bonus at the end of the year. You start making purchases or commitments based on that promise. But what if the bonus doesn’t come through? Now you’re left covering those bills with money you don’t have.

It’s like baking a cake and assuming you’ll find eggs later. If you don’t, the whole thing falls apart.

That’s why knowing which of the following should not be considered when setting a current budget is so critical—it protects you from relying on unstable ground.

The Role of Realistic Planning

Budgeting doesn’t have to be restrictive or stressful. In fact, it should actually give you more freedom. But that only happens when your budget comes from accurate, realistic inputs.

Think about it like this: your budget is like building a house. If you use real bricks and materials, your house stands strong. If you try to use imaginary wood or pretend cement (like future income), your house collapses.

So how do you stay realistic? Ask yourself these questions when preparing your budget:

Is this income guaranteed?
Have I received this money before and can expect it again consistently?
Is this expense something I must pay monthly, or is it a one-time splurge?

Asking these questions helps you stay focused on what actually matters when creating your monthly plan.

Personal Story: Learning It the Hard Way

A few years back, I started freelancing while working a part-time job. I had a couple of good months and thought, “Hey, this is easy!” So I made a budget expecting the same amount of income every month. I even booked a short vacation and bought a new laptop based on projected income.

Well, you can probably guess what happened next. My third month of freelancing tanked. I barely made half what I did before. Suddenly, my budget—and my bank account—were a mess.

That experience taught me to base my budget on what’s stable. I started treating freelance income like a bonus instead of a given. My financial life changed completely, and I finally had peace of mind.

How to Build a Smarter Current Budget

Now that we’ve nailed down which of the following should not be considered when setting a current budget, let’s talk about how to set a strong one.

Here’s a step-by-step plan you can follow:

Step 1: Track your income. Write down everything you earn in a typical month. Only include sources you can count on every month.
Step 2: Categorize your spending. Break your expenses into fixed and variable categories, as we discussed earlier.
Step 3: Subtract expenses from income. This shows whether you’re living within your means—or over them.
Step 4: Adjust accordingly. If you’re spending more than you earn, prioritize cutting from variable or non-essential spending.
Step 5: Build in wiggle room. Life happens. Add a buffer for emergencies or unexpected costs.
Step 6: Set aside savings. Treat savings like a bill you must pay each month, not an afterthought.

Following these steps gives you clarity, control, and confidence.

Don’t Let Myths Sway Your Budget Decisions

There’s plenty of budget advice out there, and not all of it is helpful. Some say to “budget for abundance” or “act like you already have the life you want.” While great for manifesting dreams, this advice doesn’t belong in your current budget.

So when you see the question “Which of the following should not be considered when setting a current budget?”—remember, anything that isn’t guaranteed, certain, or already in your bank account today does not belong in your working budget.

Stick to the basics. Cut out the noise. And let your budget work for you.

Final Thoughts: Keep It Real, Keep It Simple

Setting a current budget doesn’t require complex math or fortune-telling. All it takes is honest reflection and realistic expectations. The biggest takeaway when figuring out which of the following should not be considered when setting a current budget is this:

Do not plan your budget around what you hope might happen. Plan it around what’s happening now.

With this approach, you’ll stay one step ahead, reduce stress, and feel more in control of your financial life. So go ahead—open that spreadsheet or budgeting app and get started. Your future self will thank you.