Question

A budget variance occurs when the actual results of your financial activity differ from your budgeted projections. Please identify what might be causing you budget variances at the moment. What are some microeconomic factors that could be causing this outcome? What are some macroeconomic factors that could be sources of the variance? What might you change in your financial behaviour, budget, or goals to your improve outcomes?

Answer 1

Factors which are causing budget variances are related to additional expenditure and this is also leading to change in the macroeconomic conditions and the microeconomic conditions along with the structure of the employment and lowering of the income so there is a greater deviation between what has been expected and what has been achieved and there is outcome of the budget variance

Some microeconomic factors which are causing the budget variance are related to to changes in the habits of the expenditure which has substantially increased and there has been an additional expenditure on the the medical front due to the coronavirus scare and the health expenditure and the food expenditure has also increased.

some macroeconomic factors which caused the budget variance is related to lower level of the employment in the economy and there is also an expectation of of impending recession which is leading to lower demand in the overall economy and it is relating to the changes in the structure of the income of an individual and his disposable income as well and there has been also a change from the government perspective on bailout packages of coronavirus.

I will be trying to lower my expenditure and I will be trying to work a part-time job and invest my money in order to increase my overall passive income sources which will help me to maximize my rate of return which can help me survive and sustain through adverse economic situations.