A budget is telling your money where to go instead of wondering where it went
- Dave Romsey
POSDCORB in management means Planning, Organizing, Staffing, Directing, Coordinating, Reporting and Budgeting. A budget is a management tool that can be used to plan a year’s work, forecast annual financial results, as tool for principal control and measurement, to communicate higher management objectives and plans.
A budget must communicate real objectives and priorities for the year because work will not get done unless they are budgeted for. In planning budget for your organization, consider the goals, what and how, milestones, how much and why.
It is important that you are able to defend the reasons why you have decided to put resources in a particular activity and not the other. You should also have contingency plans and milestones dates which will allow for evaluation of progress relative to the plan.
The habit of saving is itself an education; it fosters every virtue, teaches self- denial, cultivates the sense of order, trains to forethought, and so broadens the mind.
- T TMunger