Question

What similarities do you think there are between personal budgeting and budgeting for organizations?

If you have had experience with budgeting, what did you learn from that experience? What were some challenges you faced?​

please answer questions in detail that make sense. Thank you!

Answer 1

Both personal budgeting and budgeting for a corporation are quite same as well as different. Following are some similarities between the both:

• In both of the circumstances we need to calculate our expected incomes/ revenues from various sources
• In both of the cases, we would be required to estimate our expenses for the future
• In both of the cases, you have to save and invest for future and plan for the upcoming capital expenditures
• We need to evaluate every decision based on the liquidity of funds available
• Budgeting also includes which source of financing we would opt in case of need or for project finance
• You need to make future plans as well i.e. for expansion of the business or buying a new house/car
• In both of the cases, you would be required to ascertain your cash flow position and manage the same appropriately.

My experience with budgeting has been good so far, I planned my expense with +- 10% deviation and accounted all my income sources. It also helped to clearly identify where all my income was going out to. I was able to save a good percentage of my income and invest the same for my future.

Another important aspect that I learned about was my cash flow position and how to manage the same. I became a more prudent person in terms of my money.