What indicates that Rolid is preparing a budget for his finances?

The preparation of a budget is often evidenced by the methodical management of finances, which includes allocating specific amounts for different expenses. In this case, Rolid's action of putting $500 in an envelope each month as spending money demonstrates a clear strategy for controlling his spending. This specific allocation method indicates that he is actively setting aside a designated amount for discretionary spending, which is a fundamental component of budgeting.

Budgeting typically involves tracking income, setting spending limits, and ensuring that expenses align with financial goals. By using cash placed in an envelope, Rolid is likely adhering to a system that helps him stick to his spending plan, managing his finances effectively to avoid overspending.

The other options do not directly indicate budget preparation. Being social, planning for early retirement, or avoiding outings may reflect personal habits or financial aspirations, but they do not explicitly demonstrate the structured approach to managing monthly finances that is characteristic of budgeting practices.