- May 8, 2022
- Posted by: Dennis
- Category: Budgeting
The second scenario is the Imaging Services Department proposes the purchase of an additional CT scanner to ease the bottleneck and the backlog of work in the department. Purchase of a scanner is quite costly and therefore, if the present one is functional is there a need for a second one? One might argue that the high demand for usage creates tension between employees, wear and tear of the machine increases maintenance costs, overtime pay for the technicians’ increases overhead costs and the hospital is left vulnerable in the event that the current scanner seizes to function. These are all valid considerations. However, one wonders; does the total benefit exceed the total cost? The last scenario is a group of doctors working for the hospital propose the purchase of a special machine that eliminates the need for in house hospitalization of patients. With the new machine comes the benefit of reduced hospitalization.
Budgeting is as difficult as dieting: keeping track of money spent is at least as challenging as keeping track of calories intake. That’s why there is such a wide variety of budgeting software available today, but does it really make our life easier? If you are not computer savvy, or if you do not have sufficient time available to spend in front of the computer learning a budgeting program and then keeping it regularly updated, don’t worry, you’re not alone. There is another excellent, inexpensive, and practical method to keep your budget on track and your expenses in check: the use of envelopes and cash. Once you have set your budget, label each envelope as per the expense categories you have identified (E.g. groceries, medical expenses etc.) and fill each envelope with the established amount of cash for that week or month, depending on how much cash you feel comfortable in keeping around and depending, of course, on your cash availability.
This is one of the major keystones of creating and maintaining a budget. If you have $200 per month to spend on groceries then every time you go to the grocery store you should come home and note that you spent x amount of dollars on this date. Hint: For expenses such as groceries, you may also want to keep track of the dates to monitor how many times you visit the grocery store. This can be a key factor in cutting down some of your expenses. We all have the itch to run to the grocery store when we run out of one particular item. This can really nickel and dime you if you let it. If you can, it is good practice to wait to buy your groceries in bulk on a day where there are sales going on. You could wind up saving yourself the extra trip and a little money as well. Pack you lunch and breakfast if you can. If you are working in corporate America, this can be one of the most difficult things to do.
During the first two years of college use a formal budgeting process using a budgeting worksheet for money management that meets established priorities as well as accounts for actual income/financial aid and expenditures. Since grants and loans may be awarded by school year or term, divide the total income by the number of months to arrive at a budgeted monthly income. In fact, a best practice is divide this further down into weekly chucks to gain even more control over the process. Then work out the expenditures side of the budget by accounting for all term-related costs like room/board and books, all monthly costs like rent, utilities and finally all weekly costs like food, toiletries, going out, etc. It’s very important to assign actual amounts to each and do a running follow-up of at least two-time periods back to check for plan-to-actual assessment. The keys to making the best budget are the accuracy of the amounts assigned to every item in the budget and accounting for even the smallest items/expenditures.
Want to make some savings but don’t see it happening? Well, you are not the only one, most people that you see around you experience similar financial issues and the reason why I say it is because I had been facing the same problem since the time I started working. I know it is quite upsetting to see no savings after having slogged for years or months in my case. And when it starts to get frustrating, you start cribbing about your job and salary. Let me ask you a question; is it your job and salary or your extravagant life that keeps you from making some savings? Honestly analyze your situation and you will discover that it’s not your income but your poorly managed finances that does not allow you to save. Of course, there can be other reasons as well but it is usually the case. But whatever the case may be, if you plan your budget realistically you are most likely to see a significant cut down in your expenditures.