Personal Budget

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

Budget can be modelled in a spreadsheet. For a successful budget, a plan is needed. The term budget means that an amount of money given to individuals or groups to be used for a particular purpose. If the business does not check their cost then it may face bankruptcy. If people do not keep track of their budget then they might end up in debt sometime. For example the university tuition fees. The tuition fees are so high that students end up taking loans of £27000-30000. But the students cannot return the loan they took as a result they end up committing suicide or sometimes face mental depression. This happens because they don’t have a budget control and also they don’t keep track of the money they are spending.

A budget is a plan which predicts how much a company makes in revenues and how much it is going to pay in expenses and so predicts a profit or loss. A budget is can be prepared whenever a company wants two and for however long a period of time it wants to prepare it for. Companies and people would budget in order to avoid overspending and even if this does happen as it will predict how much money will be needed then the person/ business can arrange for it by getting an overdraft facility or

Putting together a budget plan required knowing what expenses were needed and were incidental expenses. However, if complete a personal budget plan, you can save, invest and plan for the future.

Budgets can aid planning, which gives a business direction. A budget takes the organisational plan (goal and objectives) and quantifies this into something real to aim for. Such forward planning aids anticipating future business

No matter the design approach, all of management should understand the concepts of the budget and monitor performance. Ultimately it is the responsibility of the CEO, CFO, and/or senior management to monitor and evaluate if the organization is maintaining the budget through operations. The board of directors should review the organization’s budget for the year, oversee major expenditures, and ensure that strategic goals are being met by the organization. With the combined approach from all of management and the board of directors, a suitable budgetary plan can be implemented to ensure the efficiency of the organization and accomplishment of strategic

A budget can be thought of as a map towards a goal, such as retirement or saving for a particular items such as a house or a car. Subsequently, making a budget gives us a tool to complete this goal and keep us on track towards the end. Just as the financial planning process involves creating goals, budgets are a means to make the goals a reality and not just a dream. (Siegel & Yacht, 2009) One tool we learned about of course is being conservative, others include the cash budget when our income is less predictable, or a comprehensive budget which should include an operating budget and a capital budget. Moreover, there are times a specialized budget might need to be created for a specific goal such as a dream vacation or a tax

Since a budget is a component of sound and responsible financial management, tracking its formulation and implementation can go a long way to ensuring its objectives are adequately met. Sound budget management strategies include keeping a proper record of all the expenses v. allocations. Also, consistently review the implementation to be sure of the anticipated outcome. Considering the implementation can also help isolate the possibility of adjustments in line with the budget objectives (Wyatt, 2013).

Before getting into what personal budgeting finances are I want to explain why budgeting is important. For this idea, we will say that you have decided to startup a business, a personal financial advising firm. When establishing your financial advising firm the first thing to be done is the planning out of your company expenses. Most people would logically budget for their expenses before they began because without this financial planning you would have no idea of whether or not your financial advising firm could potentially be profitable. The next thing is to

Organizations should prepare budgets with budget control systems in place. The financial planning of the organizations targeted operation is considered budgeting. There are processes that are essential to protecting the financial well-being of the organization. There are challenges that may arise within the organization when implementing a budget and budgetary controls.

These budgets differ from static budgets in that they show projected expenses and revenue at a variety of levels (Edmonds, 2007). Like all budgets, the flexible budget establishes line items for expenses and revenue for a given period with a value assigned to each line. This budgeting approach allows for quick changes to line items in the event of unforeseen complications.

A budget is how a business manages their money by predicting the amount the company is going to spend. The two types of budgeting our:

A personal budget showing recurring and nonrecurring income and expenses, including living expenses, loan payments, savings and investment activity, and durable purchases, is a comprehensive personal budget. This type of budget shows all aspects of financial activities. It is an essential tool for managing your finances and strategizing for your financial future. With goals in mind, the comprehensive personal budget helps in determining how to effectively reach those goals with minimal financial impact. In a sense, a comprehensive personal budget is an ongoing health assessment for your finances (Siegel & Yacht, 2009).

Budgeting is potentially a managers most valuable planning and management tool - but only if budgets are carefully planned and monitored. Depending on the size of the organization, preparing a budget can be a very complex process. This tutorial focuses on important aspects of budgeting - preparation and

Budget and budgetary control practices are undeniably indispensable as organizations routinely go about their business activities and operations. These organizations are constantly on the alert on how actual levels of performance agree with planned or budgeted performance. A budget expresses a plan in monetary terms. It is prepared and approved prior to a particular budgeted period and explicitly may show the income, expenditure and the capital to be employed by organizations in achieving their goals and objectives.