Which of the following is part of creating a spending plan?

Creating a spending plan involves a comprehensive assessment of an individual's financial situation, and obtaining income information is a fundamental step in this process. Knowing the client's income sources and amounts allows for a realistic and effective budget to be drafted. This information helps in determining how much money is available for various expenses and savings, ensuring that the spending plan is aligned with the client's financial capabilities.

Incorporating income information into a spending plan sets the foundation for how much can be allocated towards necessities, discretionary spending, and debt repayment. It also plays a crucial role when assessing the client's overall financial health and determining appropriate financial goals and strategies.

While other aspects of financial planning, such as monitoring external economic trends or identifying insurance policies, can play a role in broader financial management, they do not directly influence the immediate creation of a practical spending plan. Likewise, while reducing debt obligations is vital for overall financial wellness, it typically falls under financial goals or strategies rather than the initial creation of the spending plan itself.