A flexibility plan lists the family’s usual fluctuating expenditures by headings such as utilities. Clothing, gifts or home repairs and assigns an estimated percentage of income for each category. All other unaccounted for items should be given a category in the budget as “other flexible expenses.” The budget for flexible items may be assigned by averaging the previous year’s receipts.
If the budget is inflexible, it will not be functional. A flexible budget lists the family’s usual fluctuating expenditures by headings such as clothing, gifts, home repairs etc. and assigns an estimated percentage of income for each category. A flexible budget will also allow for impulse buying within a prescribed limit. Most people enjoy emotional spending, and when these are planned in budget, they do not become obstacle in goal attainment. If these are planned in the budget and held to controllable limits they contribute to satisfaction that money can bring without affecting other important priorities. Flexibility in budget is increased when a range of expenditures is estimated for certain items that normally have fluctuating pattern.
A flexible budget will also allow for impulse buying within a prescribed limit. Most people enjoy emotional spending and when these self-satisfying splurges are planned in the budget, they do not impinge on goal attainment. Even families with low incomes are inclined to pacify emotional wants through spending. If these are planned in the budget and held to controllable limits. They contribute to satisfaction that money can bring without jeopardizing other, higher priority goals.
Flexibility in a budget is increased when a range of expenditures is estimated for certain items that normally have a fluctuating pattern. Problems arise when too wide a spread is established for an item and the added expenses must be taken from some other category. Such as “other flexible expenses.
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