The photo above is a budget.
What is a budget? A budget is a financial document that helps keep track of income and expenses. This can be done on a piece of paper, by use of a spreadsheet, or with the ease of a financial program. What does a budget accomplish? A budget allows us to see where our money is going, because of listing out income and expenses.
How do I make a budget? The steps below should help in the process to create a budget.
1. List income
2. Add income
3. List Expenses
4. Add expenses
5. Subtract expenses from income
6 Evaluate net income
A budget can be made for weekly, monthly, or yearly financial activities. It all depends on the person who makes it.
What are income, expenses, and net income?
Income is what we make, like a paycheck, or a birthday check.
An expense is what we pay, such as a cell phone bill, or car insurance.
Net income is income minus expenses, or money left over after expenses.
Can a budget change?
Yes, a budget can change. The change happens in net income. Changes can occur by getting a raise at work, getting a cheaper plan on your cell phone bill, and having to pay less on car insurance.
What is the ultimate result of a budget?
The ultimate result is to get a plan of action. A budget helps save money for a trip, a down payment on new car, or a 60 inch plasma screen TV.
With a little bit of work you can help save money by seeing where it is going to.
Sites used
http://biztaxlaw.about.com/od/glossaryb/g/Budget.htm
http://quicken.intuit.com/
Photo is from
http://www.hc-sc.gc.ca
I hope I am not as confusing this week.
Clear--yes. You don't need to write out the websites at the bottom because you've linked us to them. This is how blogs cite information, unlike in essays. Seems easy . . . so why don't people stick to budgets?
ReplyDeleteI like the idea of blogging on budgets. You are right in how budgets help you prepare for upcoming incomes and expenses. However People must know that budgets can be very hard to stick to. You did alright with this blog. I was'nt confused. One thing I did notice is you were almost talking down to your followers by defining every important word even when it was obvious.
ReplyDelete