The Purpose of Budgeting (Junior Cert Business Studies): Flashcards

Financial plan showing expected income & planned expenditure

Financial roadmap

Process ensuring expected income covers planned expenses

Identify potential problems before they occur

Makes you conscious of spending habits

Shows net cash left monthly for savings or debt repayment

Identifies high expenditure months to plan ahead

Living within means reduces financial anxiety

Developing good financial habits, budgeting part-time income

Living on tight budget, managing cash flow & bills

Regular income, more discretionary spending opportunities

Focus shifts to saving for retirement & financial security

Income reduces to pension levels, needs careful expenditure