Budgets/Budget Deficets/Income

[Todd-'o'-Vision]

The words Balancing the budget and budget deficiet are thrown around alot in an effort to confuse the matter and to brain wash the masses. I admit that I am not accounant or great mathematician but I did take accounting in high school and I do manage to keep my head above the waves of life. So let me try and laymans terms some of the lies the media and government willingly fed us to scare us. It works the same either side of the border, money is money and bills are bills.

Company Budget

I own a company my basic budget at the start of the year is going to look something like this for the upcoming year:

Building rental $1000/month = $12,000
Electricity $100/Month = $1,200
Employes $500/month*2 = $12,000
Water Works $100/Month = $1,200
--------------------------------------------------
Total planned budget for the year $26,400

For that Year I make say $40,000 thats good and well.

At the end of the year I take a look at my budget and see what things cost me and see where I have to increase spending.


Budget year end A

Building Rental $1050/month = $12,600 {owner did some renovations}
Electricity $85/month = $1,020 {boom year in electricity rates go down}
Employees $600/month*2 = $14,000 {loya employees I gave them a raise}
Water Works $100/month = $1,200
-----------------------------------------------------
Total Actual budget for the year $28,820

regardless of the costs my actual income remained the same at $40,000.

Budget year end B

Building rental $900/month = $10,800
Electricity $90/Month = $1,080
Employes $400/month*2 = $9,600
Water Works $90/Month = $1,080
--------------------------------------------------
Total planned budget for the year $22,560

For that Year I make say $40,000 thats good and well.


A look at the numbers A

My planned budget was $26,400, my actual budget ended up being $28,820 This means I underplanned my budget spending by $2,420 I have a budget deficet. That means of the money I earned I have a little bit less than I planned on having for increased advertising for next year or personal profit what not. But no matter what with the budget deficet I didn't actually lose any moeny I still have a positive balance of income.

A look at the numbers A

My planned budget was $22,560, my actual budget ended up being $28,820 This means I overplanned my budget spending by $6,220 I have a budget surplus. ]. That means of the money I earned I have a little bit more than I planned on having for increased advertising for next year or personal profit what not. But no matter what with the budget surplus I didn't actually make any more I juat more of what I earned to do something with.



In conclusion

Words from the 'wise' media and the powerful throws of governement are not always what they seem. Listen carefully to what they are saying the next town/city/villiage/municipal meeting you sit in on, when the officials start crying deficet.

 

[Todd-'o'-Vision]

Wheres my rebuttalists?

Wheres my knee jerk reactions?

Wheres my flames?

This isn't a copy and paste post, this is a Todd original.

 

[Todd-'o'-Vision]

hello out there any one home?

 

[Todd-'o'-Vision]

up for the weekday people

 

[Cheyenne]

I do this stuff for a living. Asking me to read a thread about a budget example is like asking an OB-GYN to go home and give his wife a pelvic exam.

I'll pass, thank you.

 

[Todd-'o'-Vision]

I do this stuff for a living. Asking me to read a thread about a budget example is like asking an OB-GYN to go home and give his wife a pelvic exam.

I'll pass, thank you.

thank you sweetie nontheless

 

[Sillyman]

Nothing really to rebutt Todd. Seems fairly sound to me. The main problem is when there is a continual deficet, which indicates poor planning. There is also a point thoughif your budget was $28,000 that year, and your actual expenses were $42,000, that goes beyond deficet and straight into screwed. You are either going to fold up shop, or borrow the money to make up the debt. When you borrowed the money, you increase the budget needs for the following year. Thus your expenses go up. Not a problem if you are fairly accurate in your estimation this time. But if you go over again, you are going to have debt again, which will keep piling on...

A deficet is concerning. Needing to spend several million more than we thought we needed gets kind of alarming, or even just a couple hundred in those small town budgets, especially if it's a yearly thing.