If you don't put your money or capital on something,it won't grow,it will remain where it's and remains stagnant. Even if care isn't taking the money might be decreasing while you spend part of it to purchase what you need. We all have what what we need to keep up our daily life activities. Financial Investment and Financial profit are one thing while budgeting is another. I can categorize financial Investment as something or money you invest with the intention to make profit or make gain. So by that,how do we spend our profit from business we invested in without touching the main business capital? That's why some financial Investment has diminished due to spending beyond your profit.
What is budget?
Budget is the way your capital is being allocated on things or somethings you wanted to purchase. When you have made financial Investment on any goods or services and you make profit,it's your profit that you ought to be budgeted on not the business capital. We most likely make mistake of outspending beyond our budget which without notice we swim to spending the financial or business capital. The best way to know how your money is being spent is well proper budget allocation. Budget how your money should be spend.
Financial Investment, profit and budgeting.
The terms Financial Investment and budgeting will always have a meeting point because even whwb we are making plan towards our financial Investment we must budget. Eg for example my 200 birds that will arrive today,I have made my financial Investment plan on the feeds, medication, the day old chick and like. I have made budget on how much I will spend on the birds till their harvest period of 8weeks. After I have made profit, spending the profit should also attracts another budget plan. That is how I keep habit of not swimming down to outspend my profit to the financial Investment. So we should always try to make budget on everything will plan most especially on the financial Investment and the financial profit because both the financial Investment and Financial profit have meeting point and the meeting point is proper budgeting. Finally, all of the three terms are interwoven because they all lean on one and other.
