Question

Financing and budgeting is the most important aspect of running a facility. Without a firm grasp on budget, tasks would not be able to be completed, lights wouldn’t stay on, salaries would not be paid, and the building would cease to operate. How do you operate your own personal budget? Do you understand where your money goes? Do you operate your facility (your apartment, home, room, car) with minimal risks?

Answer 1

Finance:- is a broad term that describes activities associated with banking, leverage or debt, credit, capital markets, money and investments. It provide money or credit for something.

Budget:- is an estimation of revence and expenses over a specified future period of time and is usually complied and re-evaluated on a periodic basic. It acn b e made by a person , a group of person to make an estimate for the expenditure of money.

These two are the pillor to start anything without thing one cannot make a proper disposition of his income.Each task need to be allocated with the specified amount as per the need and requirement of that task. Because the requirement of each task is different. With such one can make use a maximum use of their resources with minimum risk. Because of this activity person know where your money goes on and money use in their allocated place or not. Money is the hardcore thing which is earned after many efforts and it should not go in vein.

I make a buget for my household expenditure with my salary of 2lakh and allocated 50k to my saving account for future contigencies. One lakh distribued to repair my house and in one lakh i made further suballocation like 20k for utensils 40k for interior design etc. If 20k will not present at that time then i can analyse where is spent more which exceed as per my decided amount.

Both component help in making proper decision in personal and professional life.