Tools For Managing Your Finance Budgets Essay
Financial decisions are very crucial in the development of managing your finance through budgets. These last one need how to create them more easily, with more precision by avoiding discrepancy, and how to keep with budgets variance. Through this assignment, we are going to elucidate the tools that make better financial decisions, the components of a comprehensive budget, their purposes also, and the relationship between them and specialized budgets. a. What financial tools described in this chapter can help you make better financial decisions? The financial tools described in this chapter that can help me make better financial decisions are budgets, which are projections of the financial requirements and consequences of a plan.
They are usually created with a specific goal in mind: cut living expenses, increase savings, or to save for a specific purpose such as education or retirement. There are many types of budgets such as: First, the comprehensive budget, which shows all aspects of financial activities. Second, cash budget, which is a rearrangement of budget items to show each month in detail. Third, the tax budget, which provides activities, incomes, expenses, gains, and losses that have direct tax consequences. At last specialized budget, which is focused on one particular activity or goal.
The budget process is also an aspect of personal financial planning, a tool to make better financial…