Planning Expenditure and Finance

why plan expenditure?

avoid getting into debt

• so u don’t overspend and save or unexpected costs

control costs

• so u r aware of ur finances

avoid legal action and reposesion

• so u can pay ur bills to avoid repossesion

remian solvent

• cover any financial obligations (costs/ bills)

good credit rating

• show how trust worthy u r with money so u can borrow easier

• eg pay on time

avoid bankrupsy

• means u r unable to pay ur bebts

• the debt is clears but now u will lose assets and not be able to borrow

• stays on ur record

managing money to fund purchases

• saving instead of borrowing to fund purchases without paying intrest

gernerate income and savings

• investing and intrest from savings account will increase income

• u can set financial goals and targets if this money can ofset inflation

insurance against loss or illness

• setting money aside for emergencys and for peace of mind so that u can cover expenses for a period of time

CPI and RPI

both measure and calculate intrest reate but RPI includes housing costs