To talk about family budget take in account the following concepts: * The job is an activity developed to satisfy every kind of needs.
* The business is a way of work, as a result of the social and economical evolution of men, where the capital and work get together trough an administration.
* Capital comes from the own name, work, savings or ideas.
* The objective of all business is to satisfy needs generating wealth.
* Wealth is the quantity of products that really satisfy needs and require of productivity.
* Productivity is do more and better things with least possible of expenses.
* Every business is a way of production in which risk are taken continuously and permanently. To stablish it is requiered of a right planning and inmobile capital.
* The reach of objectives of any business depends on the participation of everyone involved in the team.
* Effort: is the intelligent application of the physical and mental energy toward work.
* Savings: Is everything that a person keeps for his future. That's why it is considered as a passive good.
* Captial: Are the goods or money saved and used to produce other goods.
There are two types of capital: the physic and money.
* Investment: is the act of activeting the own savings or others in any business risking it.
* Risk: Is the possibility of not geting profits, lost money or the hole investment or the business failure.
* Money: Is the instrument invented for men to facilitate the interchange of goods, services and products.
CONCEPTS USED IN EVERY BUSINESS
* Wealth: Is tha quantity and quality of available resources and services, it is not the quantity of money.
* Net Profit: Is the quantity remaining after deducting the expenses from the net income.
FAMILY BUDGET:
* To elaborate a family budget it is necessary to take in account the following: The Income and the expenses budgets.
* For the income budget we should consider: salary from husband and wife or only one of them. Take in account any other income that family has.
A basic check list:
Salary or wage
Overtime
Aditional Income
* In the expenses budget we should consider every expenses of the family group. The following checklist can be useful:
House toll: Mortage or rent
Car toll: quote or rent
Services (Electricity, telephone, Internet, Water, etc.)
Taxes (Income taxes, municipal taxes, state taxes, school taxes)
Expenses for school or any course
Food
Gas (It is considerable by now)
Vehicle maintenance
Clothes
Entertainment (Theater, weekends, camping, beers? :-)
Credit cards tolls
Personal credit toll
Medecines, health budget
Any other aditional expense
Normally our familiar wealth will be affected by the following simple formula:
Familly Wealth = Income - Expenses
If Income is greater than expenses, the difference could be invested or saved.
* Familiar Budget: Planning of expenses or investments of a family for a future period expressed quantitavely.
* Active: Every money incoming the familiar portfolio.
* Passive: Every money money outgoing the familiar port folio.
The familiar budget must be made along with a working family planning or family financial project.
This is the plan that allow the family to assess in monetary terms and anticipating the oprations and activities to be done with the aim of controlling and lately evaluate the financial family enficiency.
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Contributor's Note
First part of a group of topics related to Identifying my skills
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