Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating a budget allows you to decide in advance whether you will have enough money to do the things you need to do or would like to do. If you don't have enough money to do everything you would like to do, then you can use a planning process to prioritize your spending and focus your money on the things that are most important within your own life. This planning process will help to decide what you need to pay for and what you would like to do with the extra. Also, it allows you to set aside money that you might use throughout that month with extracurricular activities or just eating out occasionally with friends.
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you whether that be something that you enjoy or something that you need. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt as long as you develop tips that will alter your spending habits. Tracking your spending is essential to managing your budget. If I had
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What budgeting actually does is clearly show you how you split up your money and present you the choices on what stuff to enjoy and would like to do based on your financial limitations. It will save you the sadness of overspending and leaving you with too many deficits. Budgeting does not stop you from enjoying stuff though, it only insures that you enjoy stuff when you want it and not have to go in debt purchasing it. You avoid spending unnecessarily on items and services that do not contribute to meeting your financial goals. If you are working with limited resources, budgeting makes it easier to make ends meet especially if you have troubles
Budgeting is a familiar term to most American families. Dictionary.com defines budgeting as an estimate, often itemized, of expected income and expense for a given period in the future. In order to avoid debt, bankruptcy, or overspending it is common to create a spreadsheet of some sort tracking your spending and income. On a grander scheme, the Unites States has to budget as well.
• Not budgeting is one of the most overlooked financial mistakes. You need to know exactly how much money comes in and out at least on the weekly basis. To explain, you must find out exactly how much money you bring home, separate the money in categories to cover those expenses and finally stick with the plan.
When considering the nature of the federal budget, indeed one can trace the foundations of budgeting back to biblical principles. Inside the community of faith, the bible has often been considered the cornerstone and reference point for authoritative declarations. Thus, when applying a biblical perspective to the nature and context of the federal budget, one must begin with the nature of property and stewardship within biblical context. As conveyed in the lecture notes, “God delegated to man the authority over external things, and hence, one could conclude stewardship and ownership from Genesis… God also has authority over all humanity, in the sense that we ‘are not our own,’ and what we own is not to be ‘privately’ administered in exclusion of God.” Therefore, when discussing the federal budget in correlation to the biblical text, indeed the allocation of resources, the distribution of wealth and the overall stewardship of believers are controlled by God. As scriptures states, “God blessed the and God said to them, “Be fruitful and multiply and fill the earth and subdue it, and have dominion over the fish of the sea and over the birds of the heavens and over every living thing that moves on the earth” (Genesis,1:28,ESV).
Budgeting is the track of money you receive, but allowing yourself to spend a certain amount without going in debt. Referring back to the statement I mentioned in the previous paragraph, this prepares us for the future. The effect this budgeting projecting has on me, is it taught me a life lesson. The lesson this taught me was that I can’t go all out spending a lot of money. I thoroughly understand this by me ending up on debt on my project. This had caused me to go back and modify my spending. I had to modify most of my wants to needs. Another topic we have learned dealing with the human needs are Maslow’s Hierarchy of Needs.
The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred. The Budget Process Budgetary planning may differ between organizations. Single-period budgets and rolling budgets have methodologies that provide advantages and disadvantages that may make one budget time frame better than another. A single period may require less time in planning during a fiscal year, but is less accurate than a rolling budget that is continuously planned on a repetitive basis. In either case, budgets are planned in advance in order for a company to operate profitably, and less so to have "actual results equal budgeted results."
Every government entity has a primary goal, which is to be as efficient and effective as possible while expending the smallest amount of resources. In addition, the resources expended cannot be more than the resources received as revenues. The budgeting process is a tool that assists government entities in being both efficient and effective. Before a budget can be adequately prepared, you must first understand the budgeting concept and secondly be knowledgeable of budget types.
Introduction In the United States, every day approximately 1,600 adults are released from state and federal penitentiaries to reintegrate back into the community (Gunnison & Helfgott, 2013). Reentry programs have been created all over the nation to help offenders successfully transition from prison into society. Approximately 650,000 offenders are released each year, and nearly two-thirds of those released return to prison within three years (Sonfield, 2008). Offenders face many obstacles when trying to reintegrate back into society.
Top-down budgeting is listed in Towards a Metatheory of Budgeting as a normative theory of budgeting. Normative theories are defined as complete theories of budgeting that incorporate the budget, appropriations, preparation, and decision events. Normative theories are not intended to describe what occurs in the budgeting process but prescribe considerations for future implementation as a best practice (Williams & Calabrese, 2011). However, with the evolution of organizational complexity, top-down budgeting has become a positive theory. Positive theories explain an observation of the budgeting process and attempt to analyze why that behavior exists as an aspect of organizational culture (Williams & Calabrese, 2011). Top-down budgeting is not a desired best practice and therefore not a normative theory, because the methodology does not include key stakeholders in decision making. Top-down budgeting is used as a way to save time, centralize decision making, and limit the amount of controls given to lower levels of the organization. As organizations become flatter and remove excessive layers of management to become more nimble, the centralization of budget decisions has evolved (George, 2012). The traditional top-down budgeting approach is dated. Under the category of positive theory, top-down budgeting is a descriptive theory that explains an aspect of the budgeting process. It is an observation of practice. In an evolved definition, decisions from leadership are not the end of a process. Instead, they are a factor considered in the decisions for a final budget and department goals.
In order for a budget to be considered useful, it needs to be used as a comparison tool when the business results start rolling off the computer. This is referred to as budget vs actual variance analysis. By comparing a line item budget to actual line item results, managers can learn a lot about their business. This will enable them to make key adjustments and business decisions that
a world presence carries with it positives—access to new markets and resources—and negatives—operating in less-familiar business environments and exposure to currency fluctuations. as an example, international corporations earn revenues and incur expenses in many various currencies, and that they should translate their in operation performance into one currency (say, U.S. dollars) for reportage results to their shareholders each quarter. This translation relies on the typical exchange rates that prevail during the quarter. That is, additionally to budgeting in several currencies, management accountants in international corporations conjointly have to be compelled to allow exchange rates. This is troublesome as a result of management accountants have to be compelled to anticipate potential changes that might happen throughout the year. Exchange rates square measure perpetually unsteady, so to reduce the doable negative impact on performance caused by unfavorable exchange rate movements, finance managers can oftentimes use subtle techniques like forward, future, and choice contracts to reduce exposure to foreign currency fluctuations. Besides currency problems, international corporations have to be compelled to perceive the political, legal, and, specifically, economic environments of the various countries during which they operate. as an example, in countries like
A personal budget and is a way for individuals to show and analyze spending habits, save money and develop a plan. Set up guidelines and goals to reduce over spending to be successful saving money. Decide what is necessary and what is nonessential to survival and personal growth. Achieve good credit as a habit, which will save or lower interest rates on purchases. To budget payments to stay below net income is essential.
Budgets are an essential component of our lives, from our personal expenses, to our businesses or organizations, to the way our governments work. From a very early age, my mother tried to teach me the importance of planning and strategizing, included in what had to do with our finances. As I grew older, and especially as I became a student living on a modest stipend, I had to perfect the art of budgeting. The most difficult tasks for me were always having real expectations of the actual money I had, deciding what was absolutely necessary versus what was luxury, and thinking about saving in a strategic way. This translates to the strategies we need and follow in our workplace, as well as the everyday decision-making processes of the governing bodies of our communities. As Rachel Siegel and Carol Yacht suggest, one of the most important aspects of budgeting is making sure that the goals that are set play in harmony with the behaviors that are adopted. (Siegel and Yacht, 2010)
I also believe that a budget helps you when you are having a long-term goal. When you are on a budget you are more likely to accomplish your goals and also you will appreciate what you have even more because it was not easy to get what you have but at the end everything will be worth it.
Budget is combining your income and expenses to decide how much money you are going to spend on an item. Budget is an important step to determine your financial health and financial stability. It’s an important financial tool because it can help plan for expenses, cut cost were unneeded, save for future goals, plan for emergencies that occur inexpediently, and list what you are spending and saving.
It requires an adequate and sound organizational structure, that is, there must be a definite assignment of responsibility for each function of the enterprise. Budgeting compels all the members of management, from the top to bottom to participate in the establishment of goals and plans. Budgeting compels departmental managers to make plans in harmony with the other departments and of the entire enterprise. Budgeting helps the management to put down in figures what is necessary for a satisfactory performance. Budgeting helps the management to plan for the most economical use of labor, material and capital. Budgeting tends to remove the cloud of uncertainty that exists in many organizations, especially among lower levels of management, relative to basic policies and objectives. Budgeting promotes an understanding among members of management of their co-workers' problems. Budgeting force management to give adequate attention to the effects of general business conditions. Budgeting aids in obtaining bank credit as banks commonly require a projection of future operations and cash flows to support