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Tuesday, 4 October 2016

Personal finance and budget making, as key factors for business development

Every business man should have different ways of financing his business. without finance, it will be difficult for business owners to carry on the business owners to carry on the business operations.
Personal finance: this is a form of financing in which individuals business owners source or look for fund/money personally to carry on the operation of the business.
Uses of personal budget


  1. it helps one to maintain effective resources allocation
  2. it enhances prudent spending
  3. it creates chances for matching of revenue with expenditure
Sources of finance for individual
  1. personal savings
  2. borrowing from friends and relations
  3. credits facilities from the suppliers
  4. loans from banks
Individual business owners consumption and choice
individual business owners have various items which they use in business. these items are useful for day running activities of the business. these items are called consumables which are consumed or used up within a short period of time. consumption as the name implies, means used up, that means consumption has taken place.

Scale of preference
this is defined as the arrangement of needs that one wants to consume in order of priority or importance.

BUDGET MAKING: procedures for making budget
  1. make sure you estimate your available income
  2. identify your expenses
  3. develop worksheet to accumulate daily expenses
  4. review the budget to make sure it is what you want
  5. allocate certain amount as miscellaneous.
  6. start off by making monthly budget before starting yearly.

IN CONCLUSION
it is important to note that these items cannot be useful at the same time, therefore it will be necessary to choose out of the necessary to choose alternatives. when this is done, one has been able to make a choice. individuals have to make choices in their consumption of food, shelter, clothes and personal care.

2 comments:

  1. Vocation Options with a Finance Major To build up a back profession, you ought to have at least a four year certification. Source

    ReplyDelete
    Replies
    1. Nice one...thanks for your comment...we are to add more

      Delete

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