- Auto Finance
- 5 Signs You Might Love a Loan
- CarMax Expands Ohio Market Penetration
- How the Online Loan Saved My Life!
- Finance - Auto
- Veto puts auto title lenders out of work in Wis.
- Auto Title Loan
- The Benefits of Auto Insurance
- Finance - Home
- What is Home Equity?
- 6 Things Retirement Calculators Get Wrong
- Bank Foreclosing? Try one of these options
- Finance - Personal
- Banks offer payday loans for quick cash
- Check `n Go Releases Video: Credit Card Cash Advance Versus Payday Loan
- Don't Limit Payday Lending, Promote Responsible Lending Instead
- Insurance
- Do You Need Life Insurance?
- 4 Questions to Ask Before Buying Life Insurance
- After Profitable 2009, Reinsurers Face Pricing Pressure from Primary Insurers
- News and Press Releases
- Banks now offering payday loans
- Why Payday Loans Can Be Hazardous To Financial Health
- Defaulting on a Payday Loan- Can I Be Arrested?
- Pawnbroker - Pawnshop
- Pawnbroker History and How it works
- What's the Deal?
- Payday Loans, Pawnbrokers Need More Than Regulation, OFT Says
- Personal Insurance
- Do You Need Life Insurance?
- Why You Need Health Insurance
- Types of Personal Insurance
- Reference Library Finance and Loans
- Bank Foreclosing? Try one of these options
- Top Ten Payday Loan Myths
- Payday lenders giving advances on unemployment checks
Cash Budget
Published: 07/07/2010
What Does Cash Budget Mean?
An estimation of the cash inflows and outflows for a business or individual for a specific period of time. Cash budgets are often used to assess whether the entity has sufficient cash to fulfill regular operations and/or whether too much cash is being left in unproductive capacities.
Investopedia explains Cash Budget
A cash budget is extremely important, especially for small businesses, because it allows a company to determine how much credit it can extend to customers before it begins to have liquidity problems.
For individuals, creating a cash budget is a good method for determining where their cash is regularly being spent. This awareness can be beneficial because knowing the value of certain expenditures can yield opportunities for additional savings by cutting unnecessary costs.
For example, without setting a cash budget, spending a dollar a day on a cup of coffee seems fairly unimpressive. However, upon setting a cash budget to account for regular annual cash expenditures, this seemingly small daily expenditure comes out to an annual total of $365, which may be better spent on other things. If you frequently visit specialty coffee shops, your annual expenditure will be substantially more.