Constraints in Budgeting

[Suba]

Budget planning is an important process in the financial cycle, both for individuals and companies.
The budget is a plan of activities that will be carried out by a company in a period that is stated quantitatively (money). The budget will provide information about planned activities and estimated expenditures and revenues that will relate to the main plan. hindering the passage of the budget, among others:
1. Copying last year's budget
In some small companies, we often find that the budget preparation only copies from last year's budget, and they only increase the nominal amount (money) by a few percent, around 10%-20%. So when the budget is applied, there will be inequalities such as price discrepancies, the company's vision and mission will not change, which sector will require more funds.
2. Budget Review and Approval is too long
The completed budget needs to be reviewed and evaluated by the team manager and company leadership in order to obtain approval so that the budget can be implemented, but unfortunately the reviews and approvals carried out by the team manager and company leadership often take a long time.

 

[Kendy]

There are so many constraints when it comes to budgeting. The limited income we earn could pose as a serious barrier to effective budgeting. Personally, I make my budget every month and I use a pen and paper so I would not deviate fr it. I have to operate on a strict scale of preference and atimes use the opportunity cost so I can purchase all what is within my budget. The limited income has made budgeting very difficult.


When I was working offline as a teacher, the income I receive after a month was not even enough to cover for transportation and feeding. The frequent delay in the payment of salaries made it very difficult to even cultivate the habit of saving money or investing. Each time I tried to save, I would still end up using the money because of one challenge or the other. Everything is just so expensive and even the cost to take care of one:s health is on the high side. With all these negative backlash, this stands as a constraint in budgeting. Presently, the increase in the fuel and gas price has made it very difficult for one to even stick to his or budget.