How to Set a Sample Budget in Excel
One form of security is financial assurance. It is knowing that you have enough and even more than enough on your hands. It is being capable to meet not just our needs, but our wants as well. If you are looking for a way to manage your financial resources, below is just the right guide to make a budget.
1. Divide Your Funds
Set an allocation for your income or revenue. Make priorities. Do not just think about ensuring that you can meet all the expenditures. Set aside also for savings or emergencies. When budgeting, breakdown your personal income or company’s revenue among needs, wants, savings or emergencies, investments, and debts.
2. Set Estimates
Put to all particulars of the divisions you made earlier for your funds. Set an allowance for each amount. The very purpose of a budget is to prepare you for both the unexpected and things you are already expecting your funds will be alloted to. So making an estimate for every priority is the practical thing to do when budgeting.
3. Track your Budget
In your budget spreadsheet, specify a portion that will record the actual amount consumed for a particular. This will determine whether or not you have spent more, less, or exactly your allocated budget for it giving you an idea if you have saved a ratio of your funds or not.
4. Update your Budget Regularly
Preparing a budget already gives you convenience, but having it updated when necessary changes apply will give more convenience to you. Prices, plans, and decisions may vary over time, so making adjustments to your budget should be done when needed.
What is a budget?
A budget is a management plan, most likely of finances, for a specific span of time.
What is budgeting?
Budgeting is the proper allocation of resources.
What are the objectives and functions of budgeting?
Budgeting helps management in the following ways:
1. It compels planning.
2. It improves coordination.
3. It improves communication.
4. It provides a basis for control and performance evaluation.
5. It limits or maintains a principal budget factor.
What are the uses of a budget?
1. A budget is used for controlling income and expenditure.
2. A budget establishes priorities and sets targets.
3. A budget provides direction and coordination in meeting objectives.
4. A budget helps allocate responsibilities and resources.
5. A budget communicates targets from the top to the bottom of the hierarchy of authority.
6. A budget motivates.
7. A budget improves efficiency.
8. A budget monitors performance.
What are the factors to consider when budgeting?
4. Spending habits
What are the types of budget?
The four most common types of budgeting methods are:
1. Incremental budgeting
2. Activity-based budgeting
3. Value proposition budgeting
4. Zero-based budgeting
What is the 50/30/20 budget rule?
The 50/30/20 budget rule is a simple way of budgeting without detailing budget categories. This rule is simple. Spend 50% of your after-tax pay on needs. 30% on wants. And lastly, 20% on your savings or for paying off debt.