Budgeting Process

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Budgeting Process Essay
Malisa R. Lorthridge
EP/101 Foundations of Personal Finance
April 7, 2013
University of Phoenix

Budgeting Process Essay
The information from the Job Market Research Tool that was most useful in determining a realistic projected income five years from now was that it provided an overview of salary, education, experience, and who was hiring in my area, for the job in profession I was interested in. I was surprised in how much information I was able to take away from using this tool all together. I didn’t expect it to give out as much information as it did. I was able to get a glimpse of what my potential earnings would be with increases and how in demand this particular career choice was. I didn’t even know this tool existed. I hope that I understand the question correctly, I was able to project major categories of future expenses based on what my current expenses are. For example, I know that my daughter will be going to college in the fall and will be staying on campus. When this happens, it will free up some money for groceries, and my utility costs will go down some, however, I also had to factor in that I will have to send her money in the event that she doesn’t find a job while she is away at school. I am aware that even though I will lose some expenses, I will pick others up in its place. I did factor in inflation when I considered things like my property taxes, etc. A tool like a Personal Cash Flow Statement can be used to help manage my finances by helping determine my current and future needs. I would use it to keep up with the flow of cash in and out of my accounts. I can also keep track of my 401k, investments, and loans if I have them. I have been keeping a budget for quite some time now, but nothing really as detailed as the Personal Cash Flow Statement. I think it is the best thing I could have come across. I began using the statement this week, once I found out what it was.
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