What can be used to monitor variances in a budget ?
- Online tools
- Keeping receipts
- Bank account statements
Why do plans need to be flexible for the long term
To accommodate changing future needs wants and aspirations
Why do you need to establish clear measurable objectives?
To make a budget that is suited to your needs wants and aspirations
What are the 5 steps to drawing a budget.
- List all income
- List all expenditure
- Decide on a time period
- Fill in the figures for all sources of income and types of expenditure
- Calculate the total income and expenditure
Why is it Important to monitor financial plans.
- To check how closely real life matches the forecast
2. Analyse the cause of the variance ( over or underestimated)
How do organised, less organised and don’t plan people keep financial plans
Organised people keep receipts and other documents of income and expenditure and won’t find it hard to make a budget
Less organised take casual notes of figures each month to see their financial state
Don’t plan people would simply check their statements when they think about it.
