Budget Planning Calendar

There’s no better day than today to make a spending budget: your income vs. expenses.

And then stick to it.

However, large companies’ budgets are a lot more complex, and their budget planning calendar starts at least one year in advance of their new fiscal year. It can include projected revenue, employee salaries and benefits, cost of raw materials, building rent or mortgage, and equipment and supplies, just to name a few. Then they can easily pinpoint whether there will be a shortage of cash in any one month if expenses exceed revenue.

Savvy companies put together projected budgets for at least the next five years. Unsavvy companies...don't.

Related or Semi-related Video

Finance: What is a Budget?43 Views

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Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]

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the window just before you start doing all your Christmas shopping

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right but generally it's a plan that lets you see where your money will be

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spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]

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how much money you'll spend on clothes, food, megaphones to annoy and anger your

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neighbors and you know whatever floats your boat if you own a company well

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you'll probably have much more complicated budget for things like

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advertising and lawyer fees either way the plan helps you make sure that you

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have enough moolah for everything you need and maybe some leftover for stuff

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you want.....Joan wants to control her money so she decides to set up a budget for [Joan setting up a budget on a laptop]

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next month she makes a thousand bucks from her summer job and well here's what

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her budget looks like.....

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Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]

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gonna be caught off guard by any surprise expenses she's not gonna spend

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$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]

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to pay her phone bill although if she does get hit with some unexpected

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expenses well hopefully yeah she can just pawn some of those exotic vases she

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took from the Peterson place [Joan holding a vase]

Find other enlightening terms in Shmoop Finance Genius Bar(f)