🎯 Goal: Know to compare actual spending with the plan and adjust when off, keeping the budget realistic.
A budget is not set-and-forget. At period end, compare actual vs plan; if off, adjust next period.
Let’s explore
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Record real spending and compare to plan: which over, which under.
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A category that often overruns → raise it or cut elsewhere; budgets must be realistic.
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Repeat monthly so the budget gets more accurate.
Practice activity
🔍 Planned 200k/month for snacks but spent 320k. How do you adjust?
Worked example: Planned snacks 200k, actual 320k → over by 120k. Next month you set a realistic 250k and cut 70k from fun to balance, keeping the total budget.
Quick quiz
1. If you make a budget but NEVER review it, what likely happens?
→ Spending drifts far off plan unnoticed
2. At period end, compare?
→ Actual vs plan
3. Plan 200k, spent 320k means?
→ Over by 120k
4. A category that keeps overrunning should be?
→ Adjusted to be realistic
5. The goal of adjusting?
→ A more realistic budget
🎯 Real-life mission
At week’s end, compare actual spending to plan and adjust for next week.