Question

imfomative essay

on how to plan a budget??

Answer 1

In order to make a financial plan, budgeting is the way to go. Planning a budget takes certain considerations, time and calculations. Budget is defined as anything that helps to keep track of expenses and spending for a period of time. It is one of the efficient ways to plan expenditure and trace income and bring equilibrium the two. Usually a budget entails the allocation of monetary resources towards achieving a purpose. There are several steps involved while planning a budget.

First of which is determining and adding up income . Naturally, summing of income from all sources and a whole of picture of total income is the basic step that should be undertaken while planning a budget. By having idea about financial strength, certain allocations and calculations have a clear purpose.
Next comes determination of expenditure. When whole idea is gathered about the stable income stand, different streams of expenditures have to be identified. Besides, having an idea about the future and present expenditures helps in planning the future course of action. By designing an efficient expenditure, not does it make clear reasons of cash flow, but also helps in making budget accurate.
The next step includes measures to ensure equilibrium in budgeting. It is by far the most important consideration that one has to take while planning a budget. It calls for the evaluative inquiring of the devised budget. In order for a financial plan to be successful, the accounted income and expenses should be in harmony. It is also the stage of changes. Suppose if the spending exceeds income, certain cut off should be in order.

However, it is important to state that although the above steps are quintessential for planning and devising a good budget, but it should be remembered that a budget should be realistic. This means that a budget should be planned in such a way that it is easy to follow and paints a real picture.