Often it is difficult to prepare an annual budget and is essential to recall the various aspects involved in this activity, some related to income and other related expenses, to finally arrive at a correct budget.
Some concepts are calculated according to variables such as:
- Intuition
- Economic indicators
- Offer
- Demand
- Achievement level of own resources
- opportunities
The budgetary control generates the internal coordination of efforts, plan and control the operations that constitute the essence of planning utilities. The budget system provides a comprehensive picture of operations. At the same sales, purchases, costs and expenses are budgeted up to the potential future profits.
Personal Budget
The common question we ask is ¿what use is a personal budget? A budget is a plan of what you earn and what you spend, which allows us to plan and adjust what and how you use our money. Keeping a budget helps you understand the cost of your lifestyle, reduce anxiety to meet your payments, control our money or control our costs, leverage resources at every stage of our lives.
We must take the following steps:
- Define your goals and aspirations well
- Determine our income, debts, expenses and savings
- Calculate how much money you have left
In general, having a personal budget allows us to plan better use of our money and helps us to acquire the necessary to meet planned discipline. We must first identify inflows and outflows of money usually have or perform for a period of time. These revenues or expenses must generally classify items such as employment, investment, food, education, services, etc.
For example, we should note how we usually earn per month as a result of our work, when we usually earn per month as a result of our investment when we usually spend on food, how transportation, etc.
We identify all items that we generate income and expenses, trying to separate as much as we can and be as accurate as possible when estimating the usual money generated by each game.
Draft of our personal budget
Once we have estimated how much we usually have as income and expenses per month, we had to prepare the draft of our personal budget. To do this, simply we drew up a box where we include all items that we generate income and expenses, as well as the amounts that we expect to have in each of these items for the following months.
Once you have prepared the draft of our personal budget, we analyze it in depth, and make adjustments or changes as needed.
The first thing to do is look at the balance at the end of the budget, which is the amount resulting from the difference between total revenue and total budgeted expenditures. We must ensure that this is positive, and that is an appropriate amount.
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