Which of the following is a benefit of establishing a budget?

Establishing a budget provides the benefit of gaining a clearer picture of income and expenses. This is crucial for effective financial management. A well-structured budget helps individuals and organizations track their income sources and itemize their expenses, allowing them to understand where their money is going. This clarity enables better decision-making regarding spending, saving, and investing. By seeing the complete picture, individuals can identify areas where they may be overspending and make adjustments to align their expenses with their financial goals.

In contrast, reducing income over time, hiding from creditors, and spending more on unnecessary items do not represent the constructive outcomes that a budget is designed to achieve. Budgets are aimed at promoting financial health, encouraging responsible spending, and maintaining a productive relationship with money, which supports the overall goal of financial stability.