A Comprehensive Budget Analysis

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There are a variety of budgets that can be used to assist in the financial planning process. An investigation of the budgets can provide great insight into budget design and other tools. First, I will discuss the financial tools that can best help me. Next, an analysis of the comprehensive budget will be conducted. Finally, the specialized budgets will be considered
I really believe that a budget, a line of credit and a tax budget would be extremely helpful to my financial success. A budget will help me reflect on my financial actions and consider what to expect in impending situations. I can set objectives while I collect and organize my financial information. I can also track results during different time periods such as once a month or …show more content…

The operating budget is an analysis of all money that is received and all money that is spent. This activity happens over and over again throughout my lifetime. The operating budget is a framework that permits me to document every source of revenue and every amount that is spent with details about how the money was used. This information can be gathered from past financial behaviors and economic issues that take place in society. This personal revenue helps take care of everyday needs and wants. Excess funds can be used to multiply money and build wealth. The capital budget contains items that do not happen over and over again. The plans in this budget are for intended use years down the road. College tuition, real estate investment and retirement might be some objectives that are detailed in the capital budget. Even though these financial plans are established, I must be prepared for unexpected changes in life, such as a health crisis, or lowered wages or lay-offs (Siegal, R. & Yacht, C., …show more content…

It is an excellent tool that helps one to focus on tax issues in a separate manner. You can pull out all financial information that will be impacted by tax laws. Some people work for themselves and must create a separate tax account. Knowledge of tax law and requirements are critical. Some personal taxes are paid once a year. Self-Employment taxes can be very complex and require more than one payment throughout the year, especially if there is an employee that works with them. Detailed records must be kept (Siegal, R. & Yacht, C., 2009). These specialized budgets are extremely helpful, but must be integrated into the comprehensive budget to get a complete picture of my financial

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