What typically results from not having a budget?

Not having a budget typically leads to a lack of direction regarding financial goals. A budget serves as a financial roadmap that helps individuals plan for their income and expenditures, set priorities, and allocate resources effectively. Without it, individuals may struggle to identify their financial objectives, monitor their spending habits, and assess their progress toward achieving these goals. This ambiguity can result in financial stress, unexpected expenses, and an inability to plan for future needs such as education, retirement, or emergency funds.

The other options do not accurately reflect the consequences of not having a budget. For instance, increased savings or enhanced understanding of expenses are usually outcomes of actively managing a budget rather than the absence of one. Additionally, not having a budget doesn't inherently lead to more investments in stocks; rather, it may lead to missed investment opportunities due to uncertainty about available funds and overall financial clarity.