Budgeting Series
Do you wish to become the CFO of your life?
Adulthood is hard!
One minute you are looking at your account balance with a smile and the next minute you are a mathematician thinking about how your balance is looking like a radio station (N19.68).
Sis if this is you, then you need to start budgeting!!!
Budgeting is the process of creating a plan on how to spend your money. 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 to put it simply is balancing your expenses with your income. It is an approach that helps predict the incomes received and expenses of an individual, family, group, business entity, or government.
Types of Budgets
Personal Budget: This is used by an individual or family who plans their monthly earnings and expenses (grocery shopping, house rent, fun activities, etc.) to ensure that they do not exhaust their salary before the next paycheck.
Corporate Budget: It is a plan to maintain a statement of cash transactions, business capital, and emergency funds. It includes sales, material, production, and factory overheads.
Financial Budget: It includes objects of value possessed(e.g. land, house, car, etc.) liabilities and shareholders. It figures out a company’s short-term and long-term financial goals.
Cash Budget: It is simply a statement of cash transactions prepared in advance. It documents the money owed and money to be received for an upcoming period. It is prepared to ensure that the business has enough money to run its operations smoothly.
Flexible Budget: It is an accurate approach adopted by businesses. A flexible plan considers changes in expenses and costs over the period and adjusts accordingly.
Start actively tracking your spending and making better financial decisions today with the Herconomy budget/ expenses tracker.
Click on the link below to download the template for free! and don’t forget to stay tuned for another interesting episode on budgeting.