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When managing a household, or any other work for that matter, planning is required. A major part of that planning includes coming up with a budget. It was William Shakespeare who said, "If you fail to plan, you are planning to fail." Budgeting is a vital part of running any household. more »
Budgeting money boils down to one thing--knowing where every penny of your money goes each month. Whether you are trying to save for retirement or are staring at an accumulating pile of bills, taking control of your finances begins with creating a budget. Creating the budget isn't the hard part. Sticking to the budget is the most... more »
Budgeting loans are interest-free loans that are accessible to people in the UK who have been on income support, pension credit or income-based Job Seeker's allowance for at least 26 weeks. It is usually used to offset the costs of one expense. more »
A cash envelope budget system is an old money management strategy that is making a comeback. The basics are simple. All you need to get started is a bunch of envelopes, a notebook, a pen and your paycheck. The results of the envelope cash budgeting system, though, prove that it's extremely effective. Here's how a cash envelope budget... more »
For most people, hastily purchasing a home without adequate savings will create several headaches. Assess your current finances and determine the amount of money you will need to purchase a new home, and estimate your expected expenses upon purchasing your new home. If you are now spending $750 per month for rent, your expenses might... more »
Financial guru Dave Ramsey says that a budget means telling your money where to go instead of...
Although large corporations hire professional accounting firms, most small business owners...
"The husband who wants a happy marriage should learn to keep his mouth shut and his...
A credit crunch for debt-heavy businesses means job cuts and reduced capital spending. Cut your...
Flex budgeting is not nearly as complicated as you might think it is. It is more of a principle of business philosophy than an accounting... more »
Creating a budget helps keep the family finances in order and allows you to put cash away for emergencies. Emergencies could be anything from a... more »
Paying your monthly bills can be a challenge. You can help make things clearer by developing a monthly budget, and then sticking to it. Budgeting... more »
Budgeting can be categorized in many different ways. Businesses have different budgets for different departments within the company, and there are... more »
Budgeting and forecasting are two very different--but necessary--aspects of money management. To understand the differences between the two, you... more »
Christians use the Bible for many reasons, such as the foundation for their faith, a source of comfort and the key to understanding God. During... more »
A budget (from French bougette, purse) is generally a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.
In summary, the purpose of budgeting is to:
# Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out.
# Enable the actual financial operation of the business to be measured against the forecast.
Business start-up budget
The process of calculating the costs of starting a small business begins with a list of all necessary purchases including tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance), working capital, sources and collateral. The budget should contain a narrative explaining how you decided on the amount of this reserve and a description of the expected financial results of business activities. The assets should be valued with each and every cost.
Corporate budget
The budget of a company is often compiled annually, but may not be. A finished budget, usually requiring considerable effort, is a plan for the short-term future, typically one year (see Budget Year). While traditionally the Finance department compiles the companys budget, modern software allows hundreds or even thousands of people in various departments (operations, human resources, IT etc) to list their expected revenues and expenses in the final budget.
If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the actuals diverge wildly from the budget, this sends an out of read more at » http://en.wikipedia.org/wiki/Budget
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