why people prepare a budget


why people should prepare a household budget
Fiona Boylan
Mind Map by Fiona Boylan, updated more than 1 year ago
Fiona Boylan
Created by Fiona Boylan over 3 years ago

Resource summary

why people prepare a budget
  1. To live within their means
    1. E.G if income is expected to be 300 for the month it sets a limit for spending
    2. Think about their spending
      1. They will need to consider the type,timing and the amount of that spending
      2. Identify months when there's a lot of bills/expenses
        1. they can try spread these payments out of several months or borrow funds
        2. plan for large items
          1. they plan and save for future expenditure such as a holiday
          2. illustrate the estimated monthly net cash position
            1. when it's completed it will illustrate the net cash for the household.
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