Money Management – Budgeting vs a Budget

• BBR Productions Inc : Money Management – Budgeting vs a Budget

The difference between both Budgeting vs a Budget comes with process vs preparation. Budging is maintaining a cost effective spending cap. Spending less than is saved. Where as a Budget is the figuring of those caps. To budget is to set caps and restrictions. Figuring out each category of where and when to spend. Mastering how Budgeting works begins with understand a budget.

Starting with an average month expense list. Take that list to organize categories and place caps on those expenses. Figure out which expense are Wants vs Needs, and cut accordingly. Eating out is usually a 'Want' which can be cut fairly easily. Leisure is also a 'Want'. A 'Need' is rent, groceries, utility bills, hygiene, etc. Take 3 to 6 months of past bank statements and add up each category expense.

Once these Caps are figured into a person’s lifestyle it comes down to habit building. Keeping to strict restraints until money begins to overflow into a person's '3 Needs of Purpose'. Learning to organize and prepping for future months helps take managing control back over a financial budget. A yearly expense should be saved a little each month. That's a nice helpful truth!

PS... Can you find the monkey?

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Money Management – Cover your expenses

• BBR Productions Inc : Money Management – Cover your expenses

Figuring out a budget creates monthly caps which are based on a monthly average. Normally it is suggested to take 3 months and average them out. However, a full year gives a better overall example of an average monthly budget. By taking the Monthly Average and multiplying it by 3, it sets a cap total for covering expenses up to 3 months.

This money saved is known as a 'Safety Net'. Or total covered expenses. The best way to approach a Safety Net is by maintaining 3 months of capital into a designated account. Always maintain 3 months worth of capital within this account. While any money over expenses can now be placed in 3 other accounts known as the '3 Needs of Purpose' : Security, Growth, and Dream.

Continuing this process helps to grow strength in fueling a long lived company/life. Allow Security to protect calculated opportunities to risk chances. Growth is allocated moneys to place into investments. Stay aware of small investments; Stocks, Bonds, Mutual Funds, Intellectual Properties. Then move onto larger investments; Real estate, Businesses, I.O.U.'s, and Commodities.

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Money Management – Organizing Money

• BBR Productions Inc : Money Management – Organizing Money

Organizing money is key when managing finances. Where to place the income to pay expenses, and to sort out moneys over expenses. There are four accounts every business should have: In/Out Flow (Safety Net), Security, Growth, and Dream. Each of these accounts have a specific function(s) to help better see any company prosper from utilizing money to mastering wealth.

In/Out Flow: also known as a person's Safety Net, is the main bank account. This is where all money earned and expenses go through. Any money over a Three (3) month Budget Safety Net (known as Money Over Expense or MOE) is then given the 60/40 ÷ by 3 action. That split is placed into the 3 Needs of Purpose; Security, Growth, and Dream.

Security is to protect an individual/company when there is zero dollars left. It is the last resort 'Need'. Growth is allocated toward investments. Placing any money in this 'Need' into smart Assets. While leaving a Dream 'Need' for the things an individual/company desires. A vacation, new house, a company celebration. Learning to organize money is the first step to mastering Money Management.

Call our office : 631.599.2263

Or Email : AskMe@BBRProductions.com
Visit our website : BBR Productions Inc