Know Your Budget - KYB

Estimate of Income and Expenditure by any independent individual, of course major, any family or any nation is called Budget in a lay man's language. If any individual, family or a nation is overspending then the known sources of income then individuals have to borrow money which is financed by the private money lenders or banks and financial institutions based upon the current and future sources of income and wealth already accumulated by the individual. So far the immovable assets  of the individual are sufficient to pay off the borrowed money, the individual is considered solvent and otherwise the individual becomes bankrupt. The same rule applies to Nuclear Families, Hindu Undivided Families and even Nations. Though it is difficult to provide for each and every unforeseen expenses, natural calamities yet one must know the sources or likely sources of income and expenditure on monthly, quarterly or yearly basis. Short term budgets are always better as these get reviewed quickly. Long terms budgets, if not reviewed at regular intervals may make the assessments harder and that is why national budgets are drawn every year and Individual or Families need to review their budget every month. Smaller the size of budget, more will be implications of change in estimations.

To be continued ........

Know Your Series by........WQAINDIA