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Envelope System
The envelope system, also known as the envelope budgeting method, is a popular method for visualizing and maintaining a flexible budget. The key idea is to prioritize cash income to meet separate categories of household expenses in physically separate envelopes. __NOTOC__ Usage Typically, the person will write the name and average cost per month of a bill on the front of an envelope. Then, either once a month or when the person gets paid, they will put the amount for that bill in cash in the envelope. When the bill is due, the money is taken out to pay for that bill. This prevents the person from spending the money out of their pocket or bank account, because it is already allocated to the bill. This strategy can be adapted to multiple checking accounts, too, in lieu of envelopes. Or by using budgeting software based on the envelope system. See also *Participatory budgeting *Personal budget * Programme budgeting *Zero-based budgeting Zero-based budgeting (ZBB) is a budgetin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Participatory Budgeting
Participatory budgeting (PB) is a type of citizen sourcing in which ordinary people decide how to allocate part of a municipal or public budget through a process of democratic deliberation and decision-making. Participatory budgeting allows citizens or residents of a locality to identify, discuss, and prioritize public spending projects, and gives them the power to make real decisions about how money is spent. Participatory budgeting processes are typically designed to involve those left out of traditional methods of public engagement, such as low-income residents, non-citizens, and youth. A comprehensive case study of eight municipalities in Brazil analyzing the successes and failures of participatory budgeting has suggested that it often results in more equitable public spending, greater government transparency and accountability, increased levels of public participation (especially by marginalized or poorer residents), and democratic and citizenship learning. Participatory ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Personal Budget
A personal budget (for the budget of one person) or household budget (for the budget of one or more person living in the same dwelling) is a plan for the coordination of the resources (income) and expenses of an individual or a household. Purposes of creating a personal budget Personal budgets are usually created to help an individual or a household of people to control their spending and achieve their financial goals. Having a budget can help people feel more in control of their finances and make it easier for them to not overspend and to save money. People who budget their money are less likely to obtain large debts, and are more likely to be able to lead comfortable retired lifes and to be prepared for emergencies. Methods of personal budgeting In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously gathered, make a plan to achieve t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Programme Budgeting
Program budgeting or programme budgeting, developed by U.S. president Lyndon Johnson, is the budgeting system that, contrary to conventional budgeting, describes and gives the detailed costs of every activity or program that is to be carried out with a given budget. For example, expected results in a proposed program are described fully, along with its necessary resource, raw materials, equipment, and staff costs. The sum of all activities or program constitute the Program Budget. Thus, when looking at a Program Budget, one can easily find out what precisely will be carried out, at what cost and with what expected results in considerable detail. History This program budgeting system was first introduced by the United States Secretary of Defense Robert S. McNamara in the Pentagon in the 1949. McNamara allegedly wanted to control the many costly weapons development programs that were plagued by ever-increasing costs and delays. He called this new system the Planning, Programming ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Zero-based Budgeting
Zero-based budgeting (ZBB) is a budgeting method that requires all expenses to be justified and approved in each new budget period. It was developed by Peter Pyhrr in the 1970s. This budgeting method analyzes an organization's needs and costs by starting from a "zero base" (meaning no funding allocation) at the beginning of every period. The intended outcome is a more efficient use of resources by determining if services can be provided at a lower cost. However, the saving comes at the expense of a complete restructure every budget cycle. Although used at least partially in both government and the private sector, there is some doubt whether ZBB has ever been utilized to its fullest extent in any organization. History As an accounting manager for Texas Instruments, Peter Pyhrr created zero-based budgeting to help incorporate top-level strategic objectives into the budgeting process by tying them to the organization's specific functional areas. Under his system, costs are grouped ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Budgets
A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmental impacts such as greenhouse gas emissions, other impacts, assets, liabilities and cash flows. Companies, governments, families, and other organizations use budgets to express strategic plans of activities in measurable terms. A budget expresses intended expenditures along with proposals for how to meet them with resources. A budget may express a surplus, providing resources for use at a future time, or a deficit in which expenditures exceed income or other resources. Government The budget of a government is a summary or plan of the anticipated resources (often but not always from taxes) and expenditures of that government. There are three types of government budget: the operating or current budget, the capital or investment budget, a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
