Forgetting To Budget Analysis

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

The most common types of debt in and after college are student loans and credit card debt. If loans and tuition rise more and more, it will be increasingly difficult for students to pay them off, causing bankruptcy and economic mayhem (Taibbi). Due to rising tuition since the 2000’s (Taibbi), it is much more difficult for students to find other means of paying for college. Students are faced with debt from the loans they were forced to take out. Student loans allow students the opportunity to go to college and graduate. However, this is a double-edged sword as some student haven’t even started their career yet and they’re faced with a mountain of debt “I could never buy a house. I can’t travel; I can’t do anything, I feel like a prisoner” -Kristin Cole.

1. A budget is a formal statement of future plans, usually expressed in monetary terms.

1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points)

Everyone is in debt and the education that is supposed to help us for the future has done nothing to prepare us for it. The many news stories and articles have shown us the reality of the world’s economic flow. Students straight out of high school and college getting in debt and not knowing how to fix it or even how it happened in the first place. The millions of dollars needed to quench the thirst of companies that only want more. This could be reduced if the students were only taught the way to handle money, but only the ones who know that need to prepare early try to learn. Although people think it should be up to the parents, financial management has to be a required course for the United States education to help prepare the students for

A budget is a projection/estimation of the financial requirements and burdens that an individual/business drafts to understand their spending and financial boundaries. A budget generally outlines the situation a person will be in financially and can be created using estimates of future incomes and expenses.

Budgeting allows you to plan how to live within your means, protects you from going into

A budget is a plan on how to meticulously and effectively disperse your income prior to spending it. It’s a tool used to guide your financial decisions (Ramsey, 2009 & Solin 2012). Regardless money will be exchanged for goods and services, whether you utilize a budget or not. On the other hand, remaining diligent in monitoring the ins and outs

Budgeting also helps you in the long run because if you have an emergency or unexpected expense come up such as an oven breaking you will know how much money you have to flex with to find a solution. Another way that budgets are useful are for events. You can have a budget for any set amount a time such as a day or a week. If I have an event planned for my business I am budgeting around that to figure out how much I need to make to make a profit from the

Before getting into what personal budgeting finances are I want to explain why budgeting is important. For this idea, we will say that you have decided to startup a business, a personal financial advising firm. When establishing your financial advising firm the first thing to be done is the planning out of your company expenses. Most people would logically budget for their expenses before they began because without this financial planning you would have no idea of whether or not your financial advising firm could potentially be profitable. The next thing is to

Although, when one reflects on the day’s thoughts of finances his or her mind is easily eased because one can simply just create a course of budget. In order to keep track of spending and to stay out of debt, it is important that one writes down how much that he or she is willing to spend each month and does not go over that budget. Subsequently, by budgeting not only is one managing his or her finances but one is also making his life easier. According to Harry (2015), “A most important essential for achieving personal success is having money…having money gives you more choices and freedom to explore an open world of possibilities” (p. 413). Therefore, not only does budgeting give one a new outlook on his or her finances, but it also gives one an opportunity to explore a whole new world of

First of all, students need to know what budgeting is, and how it can help them. Budgeting can be defined as the ability to estimate the amount of money to be received and spent for various purposes within a given time frame (Finney 175). Budgeting can help students coordinate their activities, developing financial objectives, reveal inefficient, ineffective, or unusual utilization of resources, make family members aware to use money wisely, and allow recognition of problems before they occur. Although good record keeping is required for the budget to be of use, once students get themselves on a regular schedule of budgeting their finances it becomes just another

Set your budget as the budget is the planning part of your income that needs to be spent on certain expenses. The budget can be simple or complicated. Determine the amount that you can comfortably save and the amount that you can use to pay off debt. Try to reduce your fixed expenses as much as possible so that you can set aside more money to improve your credit score.

I know the word “budgeting” may have a negative connotation because most people think of it as restricting themselves by setting hard limits on spending in certain categories. If you want to do that, I won’t stop you; however, the budgeting I am referring to is simply tracking your spending so that you are aware of how much money you

A budget is a financial statement which is an estimate of income and expenditure of a set period of time, which may include planned revenues, expenses, assets, liabilities and