Master your finances with expert tips on budgeting, saving, and investing. Learn to navigate debt, plan for the future, and achieve financial security. Discover effective strategies for managing your money wisely.
Budgeting and Savings with ING Driect and ACCION USAACCION East
Make sure to look out for the next workshop that ACCION and ING wil host at http://www.accionusa.org/home/small-business-loans/financial-education-resources/workshop-calendar.aspx
In this Webinar, participants will learn about:
– Balancing rising costs and a limited budget
– Eating healthily, food banks, other resources in your community
– Budget formats that work for cancer patients
– Money management
– Debit and credit management
– Credit counselling
– Consumer protection
Saylor URL: http://www.saylor.org/books Saylor.org
106
Chapter 5 Financial Plans: Budgets
Introduction
Seeing the value of reaching a goal is often much easier than seeing a way to reach that
goal. People often resolve to somehow improve themselves or their lives. But while they
are not lacking sincerity, determination, or effort, they nevertheless fall short for want of
a plan, a map, a picture of why and how to get from here to there.
Pro forma financial statements provide a look at the potential results of financial
decisions. They can also be used as a tool to plan for certain results. When projected in
the form of a budgetA projection of the financial requirements and consequences of a
plan., figures become not only an estimated result but also an actual strategy or plan, a
map illustrating a path to achieve a goal. Later, when you compare actual results to the
original plan, you can see how shortfalls or successes can point to future strategies.
Budgets are usually created with a specific goal in mind: to cut living expenses, to
increase savings, or to save for a specific purpose such as education or retirement. While
the need to do such things may be brought into sharper focus by the financial
statements, the budget provides an actual plan for doing so. It is more a document of
action than of reflection.
As an action statement, a budget is meant to be dynamic, a reconciliation of “facts on the
ground” and “castles in the air.” While financial statements are summaries of historic
reality, that is, of all that has already happened and is “sunk,” budgets reflect the current
realities that define the next choices. A budget should never be merely followed but
should constantly be revised to reflect new information.
5.1 The Budget Process
LEARNING OBJECTIVES
1. Trace the budget process.
2. Discuss the relationships of goals and behaviors.
3. Demonstrate the importance of conservatism in the budget process.
4. Show the importance of timing in the budget process.
The budget process is an infinite loop similar to the larger financial planning process. It
involves
• defining goals and gathering data;
• forming expectations and reconciling goals and data;
• creating the budget;
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
107
• monitoring actual outcomes and analyzing variances;
• adjusting budget, expectations, or goals;
• redefining goals.
Figure 5.2 The Budget Process
A review of your financial statements or your current financial condition—as well as
your own ideas about how you are and could be living—should indicate immediate and
longer-term goals. It may also point out new choices. For example, an immediate goal
may be to lower housing expense. In the short-term you could look for an apartment
with lower rent, but in the long run, it may be more advantageous to own a home. This
long-term.
Budgeting and Savings with ING Driect and ACCION USAACCION East
Make sure to look out for the next workshop that ACCION and ING wil host at http://www.accionusa.org/home/small-business-loans/financial-education-resources/workshop-calendar.aspx
In this Webinar, participants will learn about:
– Balancing rising costs and a limited budget
– Eating healthily, food banks, other resources in your community
– Budget formats that work for cancer patients
– Money management
– Debit and credit management
– Credit counselling
– Consumer protection
Saylor URL: http://www.saylor.org/books Saylor.org
106
Chapter 5 Financial Plans: Budgets
Introduction
Seeing the value of reaching a goal is often much easier than seeing a way to reach that
goal. People often resolve to somehow improve themselves or their lives. But while they
are not lacking sincerity, determination, or effort, they nevertheless fall short for want of
a plan, a map, a picture of why and how to get from here to there.
Pro forma financial statements provide a look at the potential results of financial
decisions. They can also be used as a tool to plan for certain results. When projected in
the form of a budgetA projection of the financial requirements and consequences of a
plan., figures become not only an estimated result but also an actual strategy or plan, a
map illustrating a path to achieve a goal. Later, when you compare actual results to the
original plan, you can see how shortfalls or successes can point to future strategies.
Budgets are usually created with a specific goal in mind: to cut living expenses, to
increase savings, or to save for a specific purpose such as education or retirement. While
the need to do such things may be brought into sharper focus by the financial
statements, the budget provides an actual plan for doing so. It is more a document of
action than of reflection.
As an action statement, a budget is meant to be dynamic, a reconciliation of “facts on the
ground” and “castles in the air.” While financial statements are summaries of historic
reality, that is, of all that has already happened and is “sunk,” budgets reflect the current
realities that define the next choices. A budget should never be merely followed but
should constantly be revised to reflect new information.
5.1 The Budget Process
LEARNING OBJECTIVES
1. Trace the budget process.
2. Discuss the relationships of goals and behaviors.
3. Demonstrate the importance of conservatism in the budget process.
4. Show the importance of timing in the budget process.
The budget process is an infinite loop similar to the larger financial planning process. It
involves
• defining goals and gathering data;
• forming expectations and reconciling goals and data;
• creating the budget;
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
107
• monitoring actual outcomes and analyzing variances;
• adjusting budget, expectations, or goals;
• redefining goals.
Figure 5.2 The Budget Process
A review of your financial statements or your current financial condition—as well as
your own ideas about how you are and could be living—should indicate immediate and
longer-term goals. It may also point out new choices. For example, an immediate goal
may be to lower housing expense. In the short-term you could look for an apartment
with lower rent, but in the long run, it may be more advantageous to own a home. This
long-term.
Ammad Awan Glasgow is also responsible for ensuring that profitable sales volume and strategic objective targets are met for the assigned key accounts.
Planning is bringing the future into the present, so that you can do something about it now. Wise money management can take a lot of worry out of your life.
Know some amazing and important Financial planning tips.
Saylor URL: http://www.saylor.org/books Saylor.org
106
Chapter 5 Financial Plans: Budgets
Introduction
Seeing the value of reaching a goal is often much easier than seeing a way to reach that
goal. People often resolve to somehow improve themselves or their lives. But while they
are not lacking sincerity, determination, or effort, they nevertheless fall short for want of
a plan, a map, a picture of why and how to get from here to there.
Pro forma financial statements provide a look at the potential results of financial
decisions. They can also be used as a tool to plan for certain results. When projected in
the form of a budgetA projection of the financial requirements and consequences of a
plan., figures become not only an estimated result but also an actual strategy or plan, a
map illustrating a path to achieve a goal. Later, when you compare actual results to the
original plan, you can see how shortfalls or successes can point to future strategies.
Budgets are usually created with a specific goal in mind: to cut living expenses, to
increase savings, or to save for a specific purpose such as education or retirement. While
the need to do such things may be brought into sharper focus by the financial
statements, the budget provides an actual plan for doing so. It is more a document of
action than of reflection.
As an action statement, a budget is meant to be dynamic, a reconciliation of “facts on the
ground” and “castles in the air.” While financial statements are summaries of historic
reality, that is, of all that has already happened and is “sunk,” budgets reflect the current
realities that define the next choices. A budget should never be merely followed but
should constantly be revised to reflect new information.
5.1 The Budget Process
L E A R N I N G O B J E C T I V E S
1. Trace the budget process.
2. Discuss the relationships of goals and behaviors.
3. Demonstrate the importance of conservatism in the budget process.
4. Show the importance of timing in the budget process.
The budget process is an infinite loop similar to the larger financial planning process. It
involves
• defining goals and gathering data;
• forming expectations and reconciling goals and data;
• creating the budget;
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
107
• monitoring actual outcomes and analyzing variances;
• adjusting budget, expectations, or goals;
• redefining goals.
Figure 5.2 The Budget Process
A review of your financial statements or your current financial condition—as well as
your own ideas about how you are and could be living—should indicate immediate and
longer-term goals. It may also point out new choices. For example, an immediate goal
may be to lower housing expense. In the short-term you could look for an apartment
with lower rent, but in the long run, it may be more advantageous to own a hom.
Understanding the basics of making a budget, how to adjust expenses and save. Part of Financial Literacy series for students and young adults starting out. 10 minute course. - Alan Baren
See version with slide transitions and background audio here:
https://www.youtube.com/watch?v=tqSZjnSRWqc
Personal Finance: Budgeting & Psychology of Spending by @PhroogalJason Vitug
Budgeting is an important and vital part of personal finance. The seminar focuses on the importance of mindset to create and stick to a budget. It examines the psychology of spending and our relationship with money. The goal is to educate attendees on key budgeting terms, motivations, pitfalls and the steps to start a budget.
A budget is a spending plan that you decide upon. It is based on how much you make in income and what your monthly expenses are. By understanding your monthly income and expenses, you will be better able to manage your cash flow and determine how much debt, if any, you can assume.
• This blog will delve into key strategies and practical tips to help you take control of your finances, make informed decisions, and pave the way for a secure financial future.
Mastering Personal Finance: The Key to Financial SuccessTheGoodStuff1
Mastering personal finance is essential for achieving financial success and security. One crucial aspect of this is budgeting, which forms the foundation of effective financial management. In this comprehensive article, we will explore the significance of budgeting, provide practical tips for creating a budget, and offer relevant online resources, podcasts, books, and YouTube channels for you to lean for support and further enrichment.
Ammad Awan Glasgow is also responsible for ensuring that profitable sales volume and strategic objective targets are met for the assigned key accounts.
Planning is bringing the future into the present, so that you can do something about it now. Wise money management can take a lot of worry out of your life.
Know some amazing and important Financial planning tips.
Saylor URL: http://www.saylor.org/books Saylor.org
106
Chapter 5 Financial Plans: Budgets
Introduction
Seeing the value of reaching a goal is often much easier than seeing a way to reach that
goal. People often resolve to somehow improve themselves or their lives. But while they
are not lacking sincerity, determination, or effort, they nevertheless fall short for want of
a plan, a map, a picture of why and how to get from here to there.
Pro forma financial statements provide a look at the potential results of financial
decisions. They can also be used as a tool to plan for certain results. When projected in
the form of a budgetA projection of the financial requirements and consequences of a
plan., figures become not only an estimated result but also an actual strategy or plan, a
map illustrating a path to achieve a goal. Later, when you compare actual results to the
original plan, you can see how shortfalls or successes can point to future strategies.
Budgets are usually created with a specific goal in mind: to cut living expenses, to
increase savings, or to save for a specific purpose such as education or retirement. While
the need to do such things may be brought into sharper focus by the financial
statements, the budget provides an actual plan for doing so. It is more a document of
action than of reflection.
As an action statement, a budget is meant to be dynamic, a reconciliation of “facts on the
ground” and “castles in the air.” While financial statements are summaries of historic
reality, that is, of all that has already happened and is “sunk,” budgets reflect the current
realities that define the next choices. A budget should never be merely followed but
should constantly be revised to reflect new information.
5.1 The Budget Process
L E A R N I N G O B J E C T I V E S
1. Trace the budget process.
2. Discuss the relationships of goals and behaviors.
3. Demonstrate the importance of conservatism in the budget process.
4. Show the importance of timing in the budget process.
The budget process is an infinite loop similar to the larger financial planning process. It
involves
• defining goals and gathering data;
• forming expectations and reconciling goals and data;
• creating the budget;
http://creativecommons.org/licenses/by-nc-sa/3.0/
http://www.saylor.org/books
Saylor URL: http://www.saylor.org/books Saylor.org
107
• monitoring actual outcomes and analyzing variances;
• adjusting budget, expectations, or goals;
• redefining goals.
Figure 5.2 The Budget Process
A review of your financial statements or your current financial condition—as well as
your own ideas about how you are and could be living—should indicate immediate and
longer-term goals. It may also point out new choices. For example, an immediate goal
may be to lower housing expense. In the short-term you could look for an apartment
with lower rent, but in the long run, it may be more advantageous to own a hom.
Understanding the basics of making a budget, how to adjust expenses and save. Part of Financial Literacy series for students and young adults starting out. 10 minute course. - Alan Baren
See version with slide transitions and background audio here:
https://www.youtube.com/watch?v=tqSZjnSRWqc
Personal Finance: Budgeting & Psychology of Spending by @PhroogalJason Vitug
Budgeting is an important and vital part of personal finance. The seminar focuses on the importance of mindset to create and stick to a budget. It examines the psychology of spending and our relationship with money. The goal is to educate attendees on key budgeting terms, motivations, pitfalls and the steps to start a budget.
A budget is a spending plan that you decide upon. It is based on how much you make in income and what your monthly expenses are. By understanding your monthly income and expenses, you will be better able to manage your cash flow and determine how much debt, if any, you can assume.
• This blog will delve into key strategies and practical tips to help you take control of your finances, make informed decisions, and pave the way for a secure financial future.
Mastering Personal Finance: The Key to Financial SuccessTheGoodStuff1
Mastering personal finance is essential for achieving financial success and security. One crucial aspect of this is budgeting, which forms the foundation of effective financial management. In this comprehensive article, we will explore the significance of budgeting, provide practical tips for creating a budget, and offer relevant online resources, podcasts, books, and YouTube channels for you to lean for support and further enrichment.
2. Introduction
• Welcome to the presentation on budgeting for
financial success.
• In today's session, we'll explore how to create
a practical monthly budget that fits your
financial goals.
3. Why Budgeting Matters
• Budgeting matters because it gives you control
over your finances.
• By knowing where your money goes, you can
make informed decisions and reduce financial
stress.
4. Assessing Your Financial Situation
• Start by understanding your sources of
income, such as salary, freelance work, or side
gigs.
• List down all your income sources to have a
clear picture of your earning potential.
5. Tracking Expenses
• Daily expenses can add up quickly. Tracking
them helps identify spending patterns.
• Use apps, spreadsheets, or even a notebook
to jot down your expenses regularly.
6. Fixed vs. Variable Expenses
• Fixed expenses are those that stay constant,
like rent or mortgage payments.
• Variable expenses, such as groceries and
entertainment, can vary from month to month.
7. Setting Financial Goals
• Financial goals give your budget a purpose.
They could include paying off debt, saving for
a vacation, or investing.
• Identify both short-term and long-term goals to
guide your budgeting decisions.
8. Creating Categories
• Organize your expenses into categories to
make budgeting more manageable.
• Common categories include housing,
transportation, food, entertainment, and
savings.
9. Allocating Funds
• The 50/30/20 rule is a guideline to allocate
your income: 50% for needs (bills, groceries),
30% for wants (dining out, entertainment), and
20% for savings and debt payments.
• Adjust these percentages to suit your goals
and circumstances.
10. Creating the Budget
• Let's create a sample budget together.
• Start by listing your income at the top and
deduct your fixed and variable expenses to
see what's left.
11. Adjusting and Adapting
• Remember, life is dynamic, and your budget
should be too.
• Review your budget regularly and make
adjustments as your income and expenses
change.
12. Tips for Sticking to Your Budget
• Meal planning can save money on groceries
and dining out.
• Comparison shopping helps you find the best
deals, and setting spending limits prevents
overspending.
13. Common Budgeting Mistakes
• One common mistake is underestimating your
expenses. Be realistic to avoid surprises.
• Don't forget to include irregular costs like
annual subscriptions or holiday gifts.
14. Conclusion
• In conclusion, creating a realistic monthly
budget is a powerful tool for financial success.
• Remember to stay disciplined, review your
budget regularly, and adapt as needed.