Budgets

• We should all plan for our future finances to same degree.

• budget are set for both sales revenue and costs and it usual for each cost centre and profit centre to have budgets set for the next 12 months , broken down on a month to month basis.

• the budgets will be use dto review the performance of the company managers

​Budgets purpose:

Multiple Choice

In a cash budget, a 'shortage' of cash is a deficit. This is represented by a negative figure.

• True

• False

We want a balanced budget

The money you spend = the money you make

Multiple Choice

What is the purpose of a budget?

• to help people improve their education and skills

• to help people determine how to train for their jobs

• to help people live healthier lives and exercise more

• to help people plan their spending and saving decisions

​individual Necessary Expenses

​Rent/Mortgage

​Car payment

​Car insurance

​Cell phone bill

​Savings

​Gas for Car

​Utilities

​Food

​Money for Personal Hygiene

​Other Expenses

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​Build it into your budget or you shouldn't buy it

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​Using your savings to buy large purchases is a good idea but set a goal so you don't overspend and leave yourself with nothing.

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Do not impulse buy! Beware of instant gratification.

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