Which step in the budget-making process is the best way to offset an unexpected financial obligation?
a borrow enough money to meet expenses.
b check interest rates on loans
c add up all sources of income
d reduce expenses in flexible categories.

The correct answer is D) reduce expenses in flexible categories.

The step in the budget-making process that is the best way to offset an unexpected financial obligation is to reduce expenses in flexible categories.

When making a budget, you have to contemplate many variables and taking into consideration your priorities in order to know and respect the fulfillment of your financial obligations. But sometimes it happens that unexpected situations occur and you need to spend some money that probably was not contemplated in your budget. That is when you can go to check what expenses are not a priority and use the money contemplated in that category to be used to fulfill the unexpected obligation. So it is true that the step in the budget-making process that is the best way to offset an unexpected financial obligation is to reduce expenses in flexible categories.