Budget as Personal Financial Controller

[Suba]

On this occasion I will discuss about the budget as a personal financial controller, but first I will explain the meaning of the budget.
What is a Budget?
A budget is an estimate in the form of numbers (amount of money) in the future (a month or 3 months), both income and expenses. The budget period can be arranged according to need. The budget is prepared based on records of past income and expenses. Personal budget is used as a controller by comparing real income and expenses with the budget. If the numerical value or amount of money in the expenditure budget is greater, it means you are an expert in managing personal finances but vice versa.

 

[Shaf]

Budgeting is definitely one of the most important things in managing personal finance. Without it, one will find unnecessary expenses becoming a norm and all the money you have made within that time period of the budget would not be enough to solve your problems.

It is also one thing people struggle with, since we all vary and one person's needs are different form another's. I tell people to make a budget all about them, the lifestyles they want to lead, the problems they will face instead of trying to imitate another person. For example, as a housewife that rarely goes out, having a car can be an unnecessary expense I don't want in my budget.

For someone who goes to work daily though, having that same car be drastically reduce expenses spent on transportation each month. This, if I try to compete by having a car without needing it, I would just be creating extra expenses for myself.

 

[Austinaldo]

Budgeting is an important way to stay financially responsible and stable. Without budgeting there tends to be overspending. This isn't helpful for someone who takes their finance seriously.

Businesses have to keep a sustainable budget to stay afloat. This is why I recommend having a financial adviser as an entrepreneur. You get to know what steps to take when it comes to spending and keeping a very healthy budget.

Any business that does not take budgeting seriously, it probably wouldn't exist for a long time. Take for example a large organization. You see the large number of staffs it has. You take into account the cost of powering the business with electricity. You consider rent and so many other things. Such a company can easily overstep if no strict financial discipline is utilised. Such a company can not be sustained for long if the management does not budget well.

Indeed budget serves a great purpose. It can make or mar anyone who doesn't want to use it well. For a start up business, it is the most important part of running a business. You could easily go into debt if it is left unchecked. For established business also, it is highly important to keep budgeting records.

 

[Abigael]

Budgeting is a very important quality in personal financial management. It is something that has helped alot in staying financially stable. It involves planning how you use your money, how much you have and what you will spend it on.

One thing that helps alot with budgeting is knowing exactly how much you have at hand. Being aware of all your sources of income and how much you have at hand daily or monthly will help you alot in planning on how to spend it.

Then you need to specify clearly your needs and wants. Then Everytime you budget, you focus on satisfying needs first then your wants. Having such a plan will ensure that you don't spend your money on things that are not really important.

It is great though to include some of your desires and a few luxuries in you budget often. It helps you stay sane and enjoy yourself regularly. That keeps you from being tempted later on to spend all your money on luxuries.

Self discipline is very important when it comes to budgeting. Otherwise, you will be planning one thing then end up doing the other. When you have planned something, try as much as possible to stick to it. With time, it becomes easier to do things as planned.

 

[Mika]

I did not study economics in college, however, I know what exactly is budget. A budget is a statement of your estimation regarding your income and your expenses. Your budget will estimate your expected income and estimated expenses. For example, your budget will make a list of your estimated income, for example, x amount from your salary, y amount from your share dividends, z amount from your crypto trading, etc. Likewise, your budget will also make a list of your expenses, for instance spending an amount for your rent, b amount for your gas bills, c amount for your credit card bills, d amount for grocery shopping, etc. When you make a budget, you should try to be as much accurate as you can. For instance, if crypto trading is one of your income source, you should state realistic income (because you need to keep in mind that your price might drop and you may not be able to make profits). You will also have to set the minimum expenses, for instance, if you estimate your grocery bills to be $100, you can reduce them to $90. The most important thing about budgeting is you need to stay with your estimated expenses.

 

[Jasz]

The standard of a balanced budget is the main reason for most companies having this. It is an important task that every company needs to balance out. This is a technique used to control the income and expenditure of a business, so they know they can make ends meet with their financial responsibilities.

First, there are many reasons why the government may fail in their attempt at keeping a balanced budget. These reasons include unexpected expenses and difficulties in raising revenue, which can be caused by unexpected economic events. For example, if one company were to suddenly go out of business, then it would affect all other companies in the same industry by causing them to lose a big client and therefore losing money as well. This would mean that the government would have less tax income from these companies and therefore there would be more money being spent than gained.

Secondly, there are factors that need to be considered when keeping a balanced budget. The first factor is knowing what your income is going to be like over the next few years (e.g., if you sell your product overseas, then you need to know how much you will gain from it). Another factor is making sure you have enough money left over after paying all your bills (i.e., rent) or else you will go into debt and end.