It is more than half of year now. Maybe our budget is needed to change. I just read some article and get 10 reasons to change a budget. Like my older post, I’ll give opinion at the point.
1. Economic growth is coming in much stronger (or much weaker) than expected.
// Yes.. We need to change budget if the economic growth. Maybe we need to spend more or spend less. It depends on the effect of economic to our budget.
2. The overall environment you operate in has a major change (such as the nuclear power crisis after last year’s Japanese disaster).
// Environment change is totally unexpected. We must change budget otherwise we can’t survive in future.
3. Key commodity prices such as oil, steel, etc., are higher (or lower) than expected.
// This commodity prices is unexpected. Sometimes it can be higher and sometimes lower (mostly it is higher). You need to know the usage of this commodity per month/ year to calculate new budget.
4. Key currencies are stronger (or weaker) than expected.
// Currencies also not stabil. If the currencies become stronger it is good and you can save more otherwise you need to spend lesser.
5. Competitors are reacting differently than you expected.
//How you know the competitors reaction? It is unexpected and sometimes you need to learn about their flow.
6. Or worse, competitors have taken the initiative by acting first, forcing you to respond.
// Ok, this tips maybe suitable for business model.
7. Customers are reacting differently than you expected.
// Also, about business financial. If you are businessman/women you must know about latest customers reaction..
8. Key suppliers are changing the way they serve the market (e.g., they vertically integrate and in doing so, begin to compete with you).
// It is bad if key suppliers change their method. You need to find another alternative.
9. You have become aware of new technology or new ideas that can dramatically improve your business.
// New technology is very fast growing. It also affect on our budget. If you are really involved in the technology field, it is a must to follow the trends, otherwise you not really need to follow.
10. Key human capital talent (such as an outstanding sales resource) has become available.
// Okay, this point is difficult for me to understanding. Anybody can explain it?
Source :- Business Finance Magazine
In my conclusion, the point is more about business but can be used in personal budgeting. I think we must have plan A , plan B when writing a budget. Maybe some of unexpected can change our budget drastically. Do you have any opinion about the topic ? Maybe it will help us to learn more about budget.