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Budgets are not very useful for families where the income is extremely low. A family with an unusually low income would spend most of their money on necessities. This is the reason why there might not be many opportunities for them to cut their expenses.
It splits your income three ways: 50% toward needs, such as groceries, housing, basic utilities, transportation, insurance, child care and minimum loan payments. 30% toward wants, such as travel, gifts and meals out. 20% toward saving, for an emergency fund or for retirement, and debt paydown beyond minimums.
Disadvantages of Budgeting Delayed Results. Budgeting requires time and work, as you are aware, and for some individuals, the rewards dont show up quickly enough. Inaccuracy. Stressful Process. Budgeting is Rigid, And Mechanical. Budgeting Results Take Time to Appear. Excessive Work and Time.
Budgets are only as good as the data being used to create them. Inaccurate or unreasonable assumptions can quickly make a budget unrealistic. Budgets can lead to inflexibility in decision-making. Budgets need to be changed as circumstances change.
Every organisation has a limiting factor(s), a constraint that prevents it from expanding at the time the budget is prepared. A limiting factor would be a variable that impedes the operation or growth of a business. Examples include sales demand, labour, materials or operational constraints.
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Disadvantages of budgeting a budget could be inflexible, and not allow for unexpected circumstances. creating and monitoring a budget can be time consuming. budgeting could create competition and conflict between teams or departments. if targets are unrealistic, employees could become stressed and under pressure.
Budget Limit means the amount of Grant approved and authorised for payment by the Council; Sample 1.
Socio-economic status of the family: The socio-economic status of the family is determined by its income, education level and occupation of the members. The higher the socio-economic status the expenditure will be more on interior decoration, higher education, club membership, accommodation, recreation etc.

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