Budget Analysis Paper

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According to Siegel&Yacht(2009), “ Budgets are usually created with a specific goal in mind: to cut living expenses, to increase savings, or to save for a specific purpose such as education or retirement.”(p.89) So planning is the name of the game which involves setting objectives and determining a course of action for achieving the objectives we have in mind. We have to be aware of our surrounding conditions and a carefully calculated forecast about the future as well.

a. What financial tools described in this chapter can help you make better financial decisions?

Whatever type of budget we create, we need to take this fact into the consideration that the budget process is a multidimensional process. There are tools which enable us to make better financial decisions such as “financial statements, assessments of risk, time value of the money, macroeconomic …show more content…

To expand on this part further, operating budget’s comprises of living income/expenses, loan payments, savings/investment deposits. You can run your life with these properly in place without any interruption, but what do you do with your savings/ investment deposits? The capital budget is there for planning to channel our investments by purchasing assets which boost our income even

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