Question

Which should you use when creating a budget for your net pay or gross pay

Answer 1

The net pay should be used for creating your budget.

What is net pay?

Your net pay is your take-home pay after the deduction of taxes.

Your total pay before deducting taxes is what is known as gross pay.

Mathematically;

Net pay = Gross pay - taxes.

Thus, if you going to create a budget for yourself, you should only use the pay that is yours, the net pay. Taxes belong to the government.

Budgeting with your gross pay will leave you with deficits by the time taxes are removed from your pay.

More on gross and net pay can be found here: brainly.com/question/14690804

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