A Brief Guide To Performance Budgeting

The type of money management known as performance budgeting is commonly used by the government. For example, when striving to reach an objective, many questions are asked and much analysis is performed. There are also various policies that must be followed when it comes to this type of budget. In other words, it is a strict and thorough way to gauge if money is being spent appropriately. Nowhere is this more important than in our schools, municipal buildings and public programs. Often it is taxpayers' money that goes towards many of these federal and state improvement programs. This kind of top-level importance requires a great deal of analysis when it comes to spending money.

There are mission statements and carefully planned goals that work to justify the spending of funds. The funds are used to reach certain goals and decisions are based upon previously analyzed results and future goals. You could think of this type of budgeting as result driven budgeting. In addition to governments, large corporations use budgeting to reach their goals. In either setting, there must be an experienced team of accounting professionals who are familiar with this money management strategy.

Usually when hiring for accounting positions governments offices and large companies require their candidates to have a minimum of a Bachelor's Degree. Of course higher levels of achieved education and experience are preferred. If you start out in an entry level position, you can continue your education at a distance learning facility or evening college when you're not working. From there you can work your way up the ladder at your company. Many employers prefer to promote from within rather than filling a high level position using a brand new hire.

You can even adopt the principles of performance budgeting for your household. The starting point is to define your goals, for example paying more than your credit card bill minimum or saving up for a new car or home. Then it is crucial to justify why these goals are important. From there, you allocate money to each of your goals until such time as those goals are met. Creating a performance based budget is more complicated than using the envelope system, writing your budget on paper or filling in a spreadsheet. However, it is a thorough way to handle your finances as each penny is designated for a certain purpose based on careful planning.

 


 

Money Management News:

 

How to control the budget deficit? Do nothing - CNN (blog)

Wall Street Journal
How to control the budget deficit? Do nothing
CNN (blog)
Well, according to the Congressional Budget Office's annual Budget and Economic Outlook, the answer is quite simple: absolutely nothing at all. For all the campaign talk of the United States facing a spiraling federal budget deficit leading to a .
Current laws would slash federal deficitLos Angeles Times
Cyber Saturday: Time for Obama, Congress to earn salariesGreen Bay Press Gazette
Spending cuts OK if goal is to create jobsKearney Hub
Press TV
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York Parents, Teachers Plan to Rally at Budget Meeting - Williamsburg Yorktown Daily

York Parents, Teachers Plan to Rally at Budget Meeting
Williamsburg Yorktown Daily
They'll discuss how to mitigate the school division's budget gap, which will be $9 million if the Board of Supervisors increases school funding by $4.5 million. If that request is denied, the budget gap will widen. Since early January, Superintendent .
York County schools funding debate growsDaily Press

all 2 news articles »
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Idahoans give budget writers an earful on how to spend state money - KTVB

Boise State Public Radio
Idahoans give budget writers an earful on how to spend state money
KTVB
by Natalie Podgorski BOISE-- The Capitol auditorium was overflowing Friday morning with people who came to testify before the Joint Finance-Appropriations Committee, the lawmakers who set the state's budget. People got three minutes to tell senators .
Legislators Hear Tearful Testimony on Budget CutsTwin Falls Times-News
Budget Committee Hears From IdahoansBoise State Public Radio

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A conscientious budget - Malaysia Star

Malaysia Star
A conscientious budget
Malaysia Star
Financial Secretary John Tsang's fifth and last budget of the current-term Hong Kong government delivered on Wednesday was a model of fiscal design, the envy of most governments. Which government around the world can boast a surplus of HK$66.7bil .

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Wedding 'do how-to for budget brides - Chicago Tribune

Wedding 'do how-to for budget brides
Chicago Tribune
Skipping the salon can be a big money saver for budget-conscious brides, but how do you make a DIY 'do stand out from the every day? Sarah Potempa, a New York hairstylist who coiffs models and celebrities for runway shows and fashion magazine shoots, .

and more »
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Dana Rayburn | ADD / ADHD Money Management: Eliminate Debt .
Adults with ADD /ADHD have really hard time with money management. It's a tangled relationship. Impulsive shopping and spending make it much more complicated than organizing paperwork and learning to pay bills on ...


WisdomTree Swings To Fourth-Quarter Profit
WisdomTree, the only publicly traded U.S. money management firm focused solely on ETFs, swung to a fourth-quarter profit of $889,000 compared with a $580,000 loss in the same year-earlier period...


 

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