a. What financial tools described in this chapter can help you make better financial decisions? Personal financial planning would help me to make better financial decisions. Looking, at factors and possibilities: occurring and reoccurring events in my budgets. Setting realistic goals is a must. Ensuring that my current wages is able to meet my desires and ensure that a pattern is made in accomplishing them. I would create a financial statement for every month and value the time of money, look at the external factors which can affect my decisions and budget such as: economy and macro economy factors. Predictions are necessary because they will help to guide my career path. Sometimes, it is essay to be blind folded by the plans that the budget gets over ruled because i jump at my decision without weighing the factors. …show more content…
It only cost him the decrease in his savings amount but he was able to put it back from his tutoring (another source of income). Asset is financed by asset. b. What are the components of a comprehensive budget and what is the purpose of each component? 1. ‘’Description of business and its market.’’ 2. ‘’Explanation of how budget supports the company’s vision, mission, values goals and objectives.’’ 3. ‘’Details of how funds will be allocated.’’ 4. ‘’Supporting appendices’’ 5. ‘’A executive summary’’ All these components tied together create a budget that the strategies can be meeting. c. How are specialized budgets prepared? 1. ‘’Making decisions ‘’( Setting goals) 2. ‘’Gathering data’’ 3. ‘’Fore cast future needs’’ 4. ‘’Implementing the budget’’ 5. ‘’Controlling your spending’’ 6. ‘’Evaluating