Budgeting

Course Content

Core Financial Concepts

- Income represents money earned through various business activities like sales, services, and rent collection

- Expenses include essential costs like materials, worker payments, rent, and utilities that businesses must manage

Budget Fundamentals

- A budget serves as a financial roadmap to plan spending, saving, and sharing money effectively

- Key budget elements include fixed income, variable income, essential expenses, non-essential expenses, and emergency funds

Business Budget Example

- Uncle Satish's stationery store demonstrates practical budget management with monthly income of ₹70,000 from various sources and expenses of ₹50,000

- The business maintains emergency and expansion funds while generating ₹10,000 in profit

Debt Management

- Good debt supports growth through business loans, education, and housing, while bad debt includes unnecessary purchases and unplanned credit card use

- Successful debt management requires clear repayment plans, understanding interest costs, and maintaining emergency savings