Proper Budget plan in order to Succeed in the business Competitive Environment.

Wawirejnr

Most of us and other people venture into business opportunities with the aim of making profits , fitting in the competitive business environment , acquiring many customers and filling the gaps inn the market without having a proper plan for investment and knowledge on proper Budgeting .

Today we will be looking at good ways to plan and budget for your investments .

To begin with we must define a budget . Is an estimation of revenue and expenses or financial plan that takes into account revenues and expenses .

Types of budget

We have three types of budgets that is balanced , deficit and surplus budget .

Why budgeting is important ? .

It estimates revenues and expenditure plan and restricting spendings that is note part of the plan .

Budgeting ensures that money is allocated to those things that support the strategic objectives of the business .

Budgeting also enables us to understand the priorities of a business .A well communicated budget provides this information .

STEPS TO PUT A BUDGET PLAN .

There are steps to be followed in order to have a budget plan which is good to you .

Determine the income .

This income which is net is found after all deductions have been made where applicable .

Calculate the expenses .

Break up your monthly spendings into specific buckets for instance housing , Utilities and Food .

Calculate the difference between savings and expenses .

If the expenses are greater than savings then either make more money or spend less .

Look at your budget and determined what can be reduced .

You will be in a good position if savings are more than spendings .

Determine what to do with savings .

You have savings ! Congratulations .

Now find what best thing to do with the savings .

Make it a habit .

Aim to sticking to your budget by reviewing it every two weeks or one month .

This will help you understand how your spending is tracking what you need to change and if it is sticking to your financial plan.

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