Budget Preparation – Lets discuss a what a Zero Based Budget is. In your own words, explain how you think this is a more beneficial way to build a budget
(RESPOND TO AT LEAST TWO OF YOUR PEERS) GRADE DEPENDS ON YOUR INTERACTION ATTACHED BELOW ARE CLASSMATES POST
FIRST CLASSMATE POST
Xavier Willcox
Entrepreneurial Finance
A zero-based budget is just a breakdown of your earnings or income divided into several areas until you have a balance of zero. For instance, if I received a paycheck for $1,500.00, I would deduct all of my monthly costs. If my rent is $900, my car costs $400, my phone bill is $150, and there are yet more bills, I won’t have any extra money to spend elsewhere. Nevertheless, if I cut each expenditure in half, I’ll have enough cash on hand to cover other expenses while I wait for another payday. The proper strategy is to consistently divide my entire income into sections while allocating a set target amount to budget for each portion.You should have used up all of the money from your paycheck by the time you’ve finished each category. This will obviously require a lot of self-control since if you spend the entire amount designated for that particular miscellaneous area, you’ll be tempted to borrow money from other sources. You no longer have any extra money to draw from because you divided each category, leaving you with a zero-dollar balance from your salary. Printing a financial statement from your bank that includes a list of all of your expenses is a crucial step in assisting with this. You may then determine where you spend the most money. Most of the time, fast food becomes more costly for many people. Once you decide on a definite dollar amount to budget until you get paid again, you’ll start to notice that you’re saving more. When the funds for that particular area of expenses are spent, they are GONE!
SECOND CLASSMATE POST
Trenae Jefferson
Mar 1, 2023Mar 1 at 4:50pm
In my own words , I think zero base budgeting is a skill that justifies a new date of the year that starts from zero. Versus from starting with the previous budget and adjusting it as needed . After doing some research I learned that zero base budgeting can be more beneficial way then using other methods because it helps a company identity and eliminate unnecessary costs, keep controls of the spending, and focuses on a high profit initiates .
Company Budget Case Study
Look up your favorite company online (google, yahoo finance, etc) and report ANY budget information that discusses their prior year budget, and their current year budget. Bring up the following in your case study:
· New Expenses vs. Old Expenses
· Company Goals for the Year
· Highlighted Losses?
· Highlighted Gains?
Report this information in NO LESS THAN 500 words responding in this text box with your case study.