Sales budget : The sales budget is an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals.
Production budget : Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material.
Cash Flow/Cash budget : The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.
Marketing budget : The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.
Project budget : The project budget is a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each.
Revenue budget : The Revenue Budget consists of revenue receipts of government (revenues from tax and other sources) and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.
Expenditure budget : A budget type which include of spending data items.
The Union budget is preceded by an Economic Survey which outlines the broad direction of the budget and the economic performance of the country.
The Budget is the most extensive account of the Government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget . It also contains estimates for the next fiscal year called budgeted estimates .
Barring a few exceptions -- like elections – Finance Minister presents the annual Union Budget in the Parliament on the last working day of February . The budget has to be passed by the Lok Sabha before it can come into effect on April 01
Until the year 2000, the Union Budget was announced at 5 pm on the last working day of the month of February. This practice was inherited from the Colonial Era, when the British Parliament would pass the budget in the noon followed by India in the evening of the day.
It was Mr.Yashwant Sinha, the then Finance Minister of India in the government of Atal Bihari Vajpayee, who changed the ritual by announcing the 2001 Union Budget at 11 am.
5. The budget may become out-of-date and no longer relate to the level of activity or type of work being carried out.
6. The priority for resources may have changed since the budgets were originally set.
7. There may be budgetary slack built into the budget, which is never reviewed. Managers might have overestimated their requirements in the past in order to obtain a budget which is easier to work within, and which will allow them to achieve favorable results.
Using too much cash : ATM withdrawals are easy to lose track of. Our credit counselors advise relying on debit cards and checks, as they leave a paper trail.
Being too strict : It can be tempting to try to eliminate as many expenses as possible. The enthusiasm to save money is a good impulse, but an overly strict budget is usually doomed to failure, warn our credit counseling advisors. It's okay to budget a modest amount for a hobby, service or activity that boosts your well-being.
Spending the extras : Unexpected windfalls or raises are fun to spend, but they should go into a savings account and help you reach your long-term financial goals that much more quickly.
Note: You can either perform the demonstration described or discuss the short story below to conclude the session.
One day an expert in time management was speaking to a group of business students and, to make a point, he used this illustration. As he stood in front of the group he pulled out a large wide-mouthed Mason jar and set it on the table in front of him. Then he produced about a dozen rocks and placed them, one at a time, into the jar. When the jar was filled to the top and no more rocks would fit inside, he asked, "Is this jar full?" Everyone in the class said, "Yes." Then he said, "Really?"
He reached under the table and pulled out a bucket of gravel. He dumped some gravel in and shook the jar causing pieces of gravel to work themselves down into the space between the rocks. Then he asked the group once more, "Is the jar full?" By this time the class began to understand. "Probably not," one of them answered. "Good!" he replied.
He reached under the table and brought out a bucket of sand. He started dumping the sand in the jar and it went into all of the spaces left between the rocks and the gravel. Once more he asked the question, "Is this jar full?" No!" the class shouted. Once again he said, "Good." Then he grabbed a pitcher of water and began to pour it in until the jar was filled to the brim. Then he looked at the class and asked, "What is the point of this illustration?“ One student raised his hand and said, “No matter how full your schedule is, if you try really hard you can always fit some more things in it!" "No," the speaker replied, "that's not the point. The truth this illustration teaches us is: If you don't put the big rocks in first, you'll never get them in at all." What are the 'big rocks' in your life? Your children; Your loved ones; Your education; Your dreams; A worthy cause; Teaching or mentoring others; Doing things that you love; Time for yourself; Your health; Your mate (or significant other). Remember to put these BIG ROCKS in first or you'll never get them in at all. If you sweat about the little stuff (the gravel, sand, and water) then you'll fill your life with little things you worry about that don't really matter, and you'll never have the time you need to spend on the big, important stuff (the big rocks).
So, tonight, or in the morning, when you are reflecting on this short story, ask yourself this question: What are the 'big rocks' in my life? Then, put those in your jar first.