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BUDGETTING in Philippines
Our topics for budgeting and savings!
1. Make a strategy for effective saving
2. The world's greatest invention
3. Your two best friends: compound interest and time
4. Create your savings plan
Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Budgeting is simply balancing your expenses with your income.
A budget is a quantitative expression of a financial plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. It expresses strategic plans of business units, organizations, activities or events in measurable terms.
A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them.
HEALTH INSURANCE : HEALTH PROTECTION
PROTECTION WITH INVESTMENT GROWTH
HIGH GROWTH POTENTIAL
Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps to co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:
To control resources
To communicate plans to various responsibility center managers.
To motivate managers to strive to achieve budget goals.
To evaluate the performance of managers
To provide visibility into the company's performance
In summary, the purpose of budgeting tools:
Tools provide a forecast of revenues and expenditures, that is, construct a model of how a business might perform financially if certain strategies, events and plans are carried out.
Tools enable the actual financial operation of the business to be measured against the forecast.
Lastly, tools establish the cost constraint for a project, program, or operation.