Understanding Flexible Budgeting

In the corporate world, flexible budgeting is commonly used. This type of budget is the opposite of a fixed budget. Flexible budgets can be altered to suit the amount of sales, lack of them, or other activity in a particular industry. They are also recommended for companies because they accurately show the productivity of the management in charge of the budget. And, things are broken up into smaller categories rather than kept in large ones with estimated amounts of money. A flexible budget is just that – flexible. It changes as conditions change.

Creating a flexible budget is a specialty of a corporate accounting department. They do everything from examine past trends to forecast future ones to come up with their budget, and these are also methods they use when modifying it. If you happen to be a college student pursuing your accounting degree, this type of budget may come up in the curriculum. It sounds more complicated than it is, which you will learn after you've had some practice with budgeting in a flexible as opposed to fixed manner. It gives you an exact portrait of resources possessed and where they are going.

You can do this type of budget at home as well, with a few modifications. For example, if one month your light bill costs less than you estimated, apply the money to debt that needs to be paid down or sock it away in your savings. If you need money for an upcoming event or holiday, plan ahead of time by adjusting your categories to have enough money for what you need. The further in advance you are able to plan budget changes and adjustments, the easier they will be to make. Fixed budgeting is rarely useful except for specific types of applications and businesses. Not to say it is useless, as it does have its place in the world of financial management.

One reason flexible budgeting is so widely used is because life itself is flexible. Whether you are an accountant at a company or someone doing your household finances, things must stay flexible to accommodate the unexpected changes that get thrown your way. Things change all the time. You might get a raise, or the product you're selling may skyrocket in popularity or take a nosedive. Keeping the money management tactics flexible gives you more power to handle these changes whether they are good or bad.

 


 

Money Management News:

 

Budget giving Danville school officials headaches - GoDanRiver.com

Budget giving Danville school officials headaches
GoDanRiver.com
The $5.2 million budget shortfall facing the Danville Public Schools has been giving school officials headaches as they try to come up with where to cut spending. Many are worried that a lot of the programs and activities for students are going to have .

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The Morning File: 'Hate last year's state budget? You'll hate this one even more!' - Pittsburgh Post Gazette

Pittsburgh Post Gazette
The Morning File: 'Hate last year's state budget? You'll hate this one even more!'
Pittsburgh Post Gazette
Tom Corbett delivers a budget address to the General Assembly Tuesday, touting his spending plan and policy agenda for Pennsylvania in 2012-13. Normally, The Morning File would have sources feeding us advance dope (no pun intended) about the governor's .

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Helping Your Money Management Skills - Networked Politics
Money management is something everyone has to cope with. This is why it's crucial that people learn the skills that will help them become financially responsible. Take every effort to learn to manage your finances properly...


Oregon Budget Comes Into Focus This Week - KTVZ

KVAL
Oregon Budget Comes Into Focus This Week
KTVZ
The severity of state budget cuts comes into sharper focus this week, when economists tell the Legislature how much tax money they think Oregon will collect. The last two quarterly revenue forecasts have delivered disappointing news, .
Lawmakers bracing for bad newsBend Bulletin

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Lean budget expected from Corbett - The Herald-Mail

The Herald-Mail
Lean budget expected from Corbett
The Herald-Mail
AP With the state government projecting its fourth straight deficit next year, the budget plan that Gov. Tom Corbett will roll out Tuesday is expected to bring somber news to many who rely on state aid. Hospitals, counties, schools, nonprofit service .
Schools wait on state planWilkes Barre Times-Leader
Pocono school districts fear more cuts if Corbett slashes aidPocono Record
More pain expected in Corbett's budget proposalPittsburgh Post Gazette
Williamsport Sun-Gazette -Lebanon Daily News -The Daily Gazette
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Malloy sees no major changes to budget; education, jobs expected to top . - The Republic

Wall Street Journal
Malloy sees no major changes to budget; education, jobs expected to top .
The Republic
The three-month-long session will also focus on changes to the second year of the two-year, $40.1 billion state budget enacted last year. Gov. Dannel P. Malloy will present his proposed revisions on opening day of the session.
Educators look toward upcoming legislative session with anticipationNew Haven Register
Time to make real spending cutsWaterbury Republican American

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Congress Appears to Be Trying to Get Around Earmark Ban - New York Times

Congress Appears to Be Trying to Get Around Earmark Ban
New York Times
A coalition of budget watchdog groups says that in the absence of the age-old practice of Congressional earmarks, the legislative tools that let members attach pet projects to bills, lawmakers appear to have found a backdoor method: special funds in .

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Creative Dates on a Budget - The Quad News

Creative Dates on a Budget
The Quad News
This year, to avoid all of the money drama, try exploring more budget-friendly date ideas around Hamden and New Haven. You may just find an option that's the perfect mix of meaningful and affordable. Many ice skating rinks in the area are available for .

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