What financial tools described in this chapter can help you make better financial decisions?
Some of the financial tools I have learned in this chapter are:
Able to determine my current financial status
Develop my personal goals in such a way that they are easy to follow
Been able to identify and evaluate alternative courses of action
I am able to create and implement my financial action plan in my previous budget. In a sense that I can effectively review and revise my plan.
Defining goals and gathering data;
Forming expectations and reconciling goals and data;
Creating the budget;
Monitoring actual outcomes and analyzing variances;
Adjusting budget, expectations, or goals;
Redefining goals
b. What are the components of a comprehensive budget and what is the purpose of each component?
Components of comprehensive budgets
Operating budgets: Recurring income and expenses
Living income/expense
Loan expense
Savings/investments deposits …show more content…
In a comprehensive budget, one has to collect gather and collect data to use in creating a budget. Defining goals must be the initial step in the process. We have to understand the format of the budget, this in the long run will help guide us to the information we need. Nonrecurring income or “windfalls” should not be counted on or “budgeted for,” conservatively. Recurring incomes are earnings from wages, interest, or dividends while recurring expenditures are living expenses, loan repayments, and regular savings or investment deposits. Nonrecurring expenditures may be for capital improvements such as a new roof for your house or for purchases of durable items such as a refrigerator or a
Some of the financial tools I have learned in this chapter are:
Able to determine my current financial status
Develop my personal goals in such a way that they are easy to follow
Been able to identify and evaluate alternative courses of action
I am able to create and implement my financial action plan in my previous budget. In a sense that I can effectively review and revise my plan.
Defining goals and gathering data;
Forming expectations and reconciling goals and data;
Creating the budget;
Monitoring actual outcomes and analyzing variances;
Adjusting budget, expectations, or goals;
Redefining goals
b. What are the components of a comprehensive budget and what is the purpose of each component?
Components of comprehensive budgets
Operating budgets: Recurring income and expenses
Living income/expense
Loan expense
Savings/investments deposits …show more content…
In a comprehensive budget, one has to collect gather and collect data to use in creating a budget. Defining goals must be the initial step in the process. We have to understand the format of the budget, this in the long run will help guide us to the information we need. Nonrecurring income or “windfalls” should not be counted on or “budgeted for,” conservatively. Recurring incomes are earnings from wages, interest, or dividends while recurring expenditures are living expenses, loan repayments, and regular savings or investment deposits. Nonrecurring expenditures may be for capital improvements such as a new roof for your house or for purchases of durable items such as a refrigerator or a