Question

How does budgeting for companies compare to personal budgeting? Without revealing personal information contrast budgeting for businesses, personal household budgets, and government budgeting? Are they really that different?

Answer 1

Budget is a quantitative expression of a 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 strategicplans of business units, organizations, activities or events in measurable terms. Budgeting lies at the foundation of every financial plan. It doesn’t matter if you’re living paycheck to paycheck or earning six-figures a year, you need to know where yourmoney is going if you want to have a handle on your finances. Unlike what you might believe, budgeting isn’t all about restricting what you spend money on and cutting out all the fun in your life. It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds.

In a personal or family budget all sources of income (inflows) are identified and expenses (outflows) are planned with the intent of matching outflows to inflows (making ends meet). In consumer theory, the equation restricting an individual or household to spend no more than its total resources is often called
the budget constraint.Elements of a personal or family budget usually include, fixed expenses, monthly payments, insurance, entertainment, and savings.There are many informational sites and softwareavailable for use in personal and
family budgeting.