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The Components Of A Comprehensive Budget And What Is The Purpose Of Each Component?

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WRITTEN ASSIGNMENT #4 What’s the Financial tools described in this chapter that can help you make better financial decisions? The Financial tools that can help me make better financial decisions are budgeting and comprehensive budgeting. Budgeting is taking into account all of your expenses. I do this on a monthly basis. My income is average and my expenses are not that great so I live within my means. Rent, food, car insurance and school loan is pretty much what I pay a month but through budgeting and learning more about comprehensive budgeting I can get a complete look at my finances. With learning how to do comprehensive budgeting I’ll learn how to calculate interest on loans, gas, taxes, interest on credit cards, which is something I don’t do right now so learning this will be a great advantage and help to me. What are the components of a comprehensive budget and what is the purpose of each component? …show more content…

Wages, interest, loans, dividends, expenses, etc. Textbook Chapter 5 (page 91). It’s every financial calculation that you incur in your life on a monthly, weekly or yearly basis. Some money is calculated every month which we call reoccurring income and expenses, while some expenses are nonrecurring expenses. Some expenses only occur twice a year so you have to take those into account as well. In chapter 5, Mark has a chart of his comprehensive budget and it’s extensive. I learned a lot from this budget. How to tally interest on credit cards, and gas, property tax. I have to incorporate this into my budget. Something that I haven’t done as of yet but I will start. Comprehensive budgeting is very detailed and exact and keeps a true record of your real expenses as they occur throughout the week, month and

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so when i am budgeting my money for the month I try to live the most inexpensive way

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Here are them: 1. It is used for important military matters. The US military budget is the portion of the country’s discretionary federal budget that is allocated to the Department of Defense or, more generally, the portion of the budget that is allocated to any expenditure related to the military. It is used to pay the training, health care and salaries of civilian and uniformed personnel; to maintain arms, equipment and facilities; to fund operations; and to

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Aside from saving your gross income, Chilton also recommends that people pay themselves first, and then spend on a budget. Or in other words, save first. Spend the rest. Good. (Chilton, 2011) stated that “Many average-income Canadians carry $15,000 to $25,000 credit-card limits” (p. 19) and this is an invitation to disaster.

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Write down everything you spend money on for a full week. Most people who engage in this activity are shocked to find out how much money they spend on items they don’t need. By practicing basic money management techniques, college students can feel confident about their ability to manage their

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Solution : Introduction: A budget is an estimation of particular commodity, quantity etc. It can be prepared for any number of days but generally it is prepared wither for a year or quarter... A budget may or may not become the actual outcome.

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This may sound overwhelming to deal with but it is plain and simple. I work at a retirement home/hospice and make eleven dollars an hour. If I'm working twenty four hours a week (part time) I will come home with a monthly check of about one thousand and fifty six before taxes. With this amount I am able to pay my two credit cards, student loans, room and board (rent), and still have money left over for food and gas.

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When people don't know how to manage their money they don't make smart informed decisions. They don’t have a decision-making process that takes them through being all the steps to being a good consumer, they don’t know to make sure that there is enough money in their budget to buy a product. In fact, they don’t have a budget or even understand the necessity for one. We need a budget because it ensures that we have enough money for the things we need and the things that are important to you, and any good budget has savings for “just in case”. Having a budget will help you develop better financial habits, relieve emotional stress and assist you in achieving your financial goals.

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If you 've never saved in your life, you have to include savings in your budget. Proverbs 13:11 tells us that gathering money little by little makes it grow. You will grow and become financially flexible when you obey and apply God 's word to your assets. You must have something in the barn for Him to bless and you must put your hand to it (Deuteronomy 28:1-14). No matter what the economy is doing, you will be able to go on vacation, put your children in private school, go out to dinner and keep

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To deal with this problem, I decide to help my dad to create the budget plan. Every month, I decided an amount to save and spend. This shaped me to be a manageable and a mature person, because I started managing my family. I knew how to spend and save the money at the same time with a small

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