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Finance: What is a Budget? 43 Views

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Description:

What is a Budget? A budget is a projected estimate of revenues and expenses within a fixed time period. It is intended to be a guide and reference for the user of the budget, which can be an individual, a group, a company, a project, or a government body.

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Transcript

00:00
Finance a la shmoop what is a budget? that's that thing you throw right out [Woman throws budget out the window]
00:07
the window just before you start doing all your Christmas shopping
00:10
right but generally it's a plan that lets you see where your money will be
00:14
spent if you have a personal budget well you'll be able to decide ahead of time [Personal budget example]
00:18
how much money you'll spend on clothes, food, megaphones to annoy and anger your

00:24
neighbors and you know whatever floats your boat if you own a company well
00:28
you'll probably have much more complicated budget for things like
00:31
advertising and lawyer fees either way the plan helps you make sure that you
00:36
have enough moolah for everything you need and maybe some leftover for stuff
00:40
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]
00:49
next month she makes a thousand bucks from her summer job and well here's what
00:53
her budget looks like.....
00:58
Now Joan knows exactly where every penny is gonna go she's not [Joan driving a car]
01:02
gonna be caught off guard by any surprise expenses she's not gonna spend
01:06
$200 on safecracking equipment and then realize she doesn't have enough left [Joan stood beside a vault of gold bars]
01:10
to pay her phone bill although if she does get hit with some unexpected
01:14
expenses well hopefully yeah she can just pawn some of those exotic vases she
01:19
took from the Peterson place [Joan holding a vase]
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