Budgeting can help you avoid which of the following?

Budgeting plays a crucial role in managing finances by providing a structured plan for income and expenses. This practice helps individuals to allocate their income wisely, ensuring that they do not spend beyond their means. By creating and sticking to a budget, individuals are made acutely aware of their financial limits, which helps to prevent impulsive or unnecessary spending, also known as overspending.

Additionally, budgeting acts as a safeguard against debt accumulation. When a budget is in place, it allows individuals to anticipate their monthly financial obligations and prioritize their spending. This foresight can prevent the need to resort to credit cards or loans, which often leads to debt.

By incorporating both the avoidance of overspending and the prevention of debt accumulation, budgeting emerges as an essential tool in achieving financial stability and well-being. Therefore, the acknowledgment that budgeting helps in both these aspects leads to the conclusion that the correct answer encompasses both overspending and debt accumulation.