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Budgeting for individual & company-importance

Go to the website of Practical Money Skills for Life at Click on at Home, and then click on Budgeting. Click on the Budget Calculator and create a personal budget, using fictitious numbers if you wish. You may also use any of the other tools that are available at this site. Change one or more of the income and expense numbers in your budget and determine the impact of the change(s).

What surprised you, if anything, in the budget(s) that you prepared? What changes, if any, would you make in the personal activities that are under your control, based on the budget(s) that you prepared? Do you think it is more important for a business to have a budget than it is for an individual to have a budget? Why or why not?

Solution Preview

The budget calculator in the website shows the various types of income received by an individual and the various expenses in a particular month. Income includes the income of the individual, his spouse, interest income to be received by the individual and any other income to be received by the individual definitely. Likewise, an individual will incur various expenses viz., rent, food, children education, insurance, utilities like electricity, credit card payment due in the month, ...

Solution Summary

The answer contains the importance of budgeting for individuals and company.