Question

Budgeting skills can be used in business or personally. How will what you have learned during this topic impact budgeting for you personally or for a business you own or work for? Please explain.

A MINIMUM OF 150 WORDS, PLEASE.

Answer 1

Budgeting skills refer to planning in advance about future outcomes and incomes. It can be for personal or for business. Personally, when I study and work part-time, I used to plan in advance about my next month's earnings and expenses so that when I earned actual income, I was able to spend the earnings effectively. Side-by-side, I was carrying a business activity also to earn necessary money to meet out my business expenditures including some of the personal expenditures. Budgeting skill what I've acquired from the course helped me a lot to forecast next month's demand for the service I dealt with and plan my activities accordingly both in terms of financial as well as time allocation.

After learning the budgetary control topic theoretically, I was able to improve my budgeting skills in terms of accurate calculations with the help of capital budgeting tools such as future cash flows forecasting, present value technique, future value technique, payback period, profitability index, etc. Once I've forecasted future cash flows, I could effective make use of internal rate of return as an effective evaluation tool to plan for my investments and savings.