How to manage your budget successfully?

The key to really being successful at budgeting is to take a multi-step approach to budgeting. Doing these steps in the right order will make it easier for you to budget successfully in the future.

 

1. Before You Budget

One of the reasons people fail when they begin to budget is that they don't believe in the budgeting process and have a difficult time determining how a budget will help them improve what they want to do. Before you sit down and hash out the numbers for your budget, you need to decide what you want your budget to do for you. If you know that the budget will help you get out of debt and to get financially secure this can help you.

 

2. Setup yur budget

Once you have decide what you want your budget to help you do, then you can set up your budget. The clear goals and guidelines you just set up will help you make the sacrifices necessary to make your budget work. Writing down your expected expenses and getting them to equal your income is one of the easiest parts of the entire budgeting process.

 

3. Tracking your budget

Once you have created your budget, you are ready for the hard part: following it! This is the place when people who attempt budgeting fail. It can be time consuming to record your transactions each day and subtract them from your account and the correct budget category. You can transfer between categories to cover areas where you had not estimated the correct amount for the month, but you must make sure you expenses do not exceed your income.

 

4. Evaluating your budget

After the first month you will need to evaluate your budget. This is essential to getting a working budget. Ideally you should evaluate every month for the first six months that you budget. You should also be able to identify your budget weakness. This allows you to make adjustments to areas where you may have estimated the wrong amount.

 

5.Setting Goals for your budget

After you have reached the goals you originally set you may want to set new goals to reach. Additionally you can set goals that allow you to reward yourself for meeting new spending limits.

 

6. Cutting Spending

Each year you should evaluate areas where you can cut your spending. It is too easy to just assume that your bills are set in stone, and that you cannot do anything to lower them.

The question is very clear

anlaysing all types of variances for the actual  level of activites will help in managing the budget sucessfully,otherwise the budget will not sereve the most important mangerial puroposes (,planning ,controlling and evaluating the actual performance)

 

Ensure your forecast is detailed and justified when requesting a budget as it always needs a foundation.
Allocate the budget and match against forecast and prioritise key deliverables as forecast request rarely turns into a full100% budget allocation.
Prioritise: That is the first lesson.
Don't try and achieve everything as there will never be enough money.
Plan you budget on when and how you plan to spend it BEFORE you spend it.
Monitor, Monitor spend against planned budget and take immediate corrective action by forecasting forward.
Detect an overrun ?, descope a lower priority item from you budget.
Always investigate and use past trends and use experience and quotes to build up budgets.
The above will help you keep the budget under control.

This is rather a bland open question.
The question has to be more focussed, if you are to get an answer which has any value to you.
I will attempt to provide a concise answer, although it will be somewhat academic.
First of all, finance is a resource organisations need, in order to operate.
This resource is used to obtain raw materials, staff, marketing, infrastructure, maintenance, communictions, IT, technology, and provides capital for captial projects and expenditure.
Like all resources it has to be controlled.
So depending on the budget in question, depends on how the budget should be allocated.
Please also remember when working with budgets one has to provide a forecast to the CFO inorder to obtain the budget you will have to work with.
If you have any questions please feel free to ask me.