I was looking at this production today that had to literally hire hundreds of people to do some work. It definitely had money pumped into it and so you can assume that every department was carefree in terms of its spending. In this scenario all of the people they ended up hiring didnâ€™t even need to do anything and got paid still. The reaction? Basically a â€œoh well, we budgeted it for it.â€
I guess this is why even if you run a large company of sort where you have the money to hire a bunch of people to do things for you that you still need to be hands on with all of your finances and daily reporting. This is almost like the equivalent of paying for a monthly cable bill when you donâ€™t even watch TV as you have to designate an â€œentertainment fund.â€
When it comes to a budget I usually work with the money as a whole and then start to designate it into certain categories until it seems sustainable for whatever I am doing. I know a lot of people would say create all of the categories they think they need first and then start to distribute their funds.
I guess if it is like shopping for food what I would do is take that $200 and start to write down items that I want/need. As I am making the list and seeing the best prices the amount of money I have left really makes me think if I need something or not. This is opposed to say splitting the funds right away such as $50 would go to breakfast items, $50 for lunch items, $50 for fruits and vegetables, etc. I find with that method you are usually enticed too much to spend everything that you designated that way. As well, you are inclined to say â€œOh well, I planned to spend $50 on this.â€ Thatâ€™s why I personally avoid the blanket budget mentality.