Peter Norris – Budgets and Management

December 4, 2013 § Leave a comment

this lecture we are looking about money and finance. We started with looking at different money terms:

1. Cost and the way that this is surrendered in order to gain something else however this might not add financial value to it.

2. Profit is an amount that is gained after all costs, excess of income after all costs, this normally has a financial value.

3. Income is money generated on taken activity.

PROFIT = INCOME – COST
Problems: making a loss when the profit is low.

Companies want and need to maximize cost, they reduce profit in which they would reduce income tax. We have to recognise that there is this someone who is going to come in and want some of this, which means organisations would like to increase profit by decreasing costs.

The next exercise was to calculate the costs in which we spend coming to and living at uni in one year;
£4600 – halls of residence
£7950 – tuition
£20 a week on food – £960
£55.90 – washing
£300 – leisure
£200 – going home over the year
£300 – going out
£36 – phone bill
£200 – presents for birthdays/Christmas
£3250 – maintenance & grant

Cost to do one project at university:
£50 – collect 30 different frames
£10 – materials like card, black acrylic, nails, varnish & paintbrush
£30 – printing book

NEED TO LEARN TO BUDGET

Maybe create an excel spreadsheet to help you calculate cost and spend and more importantly budget yourself. Amortize means to spread to death, spreading money along lifetime. Also need to look at costs when doing a design job, how much travel, managing activities, supplies, CDs/data storage and inks are examples of things to consider. How much do you want to charge an hour?

Cash Flow:
Money comes in – Money goes out, where is it going to?

We then calculated money that comes in to us:
£400 a month – wage
£100 a month – parents
£7950 – tuition loan
£3250 – maintenance loan and grant

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