The budget is a systematic plan of work prepared and expressed in monetary units. Normally budgeting based on past experience and appraiser-estimated in the future, then this can be a work guidelines for each section within the company to run its activities.
The main purpose of the budget is for external monitoring, which is to limit the overall resources available to an agency and to prevent expenditures for things or activities that are not justified by law.

Benefits Budget:

According to Marconi and Siegel (1983) in Hehanusa (2003, p.406-407) the benefits of the budget are:
1. The budget is the result of the planning process, it means that the budget represents an agreement negotiated between the dominant participants in an organization on the purpose of activities in the future.
2. The budget is an illustration of the priority allocation of resources because it can act as a blueprint for corporate activity.
3. The budget is an internal communication tool that connects the department (division) is one with a department (division) others in the organization as well as with top management.
4. The budget provides information about the actual activities compared to the standards set.
5. Budget as a tool of control that leads management to determine the organization’s strong and weak, this will be directing the management to determine corrective actions to be taken.
6. Budget to influence and motivate managers and employees to work with a consistent, effective and efficient in conditions of fitness for purpose of corporate goals with employee goals.

annuity fixed period, fixed amount, or lifetime

Fixed period annuity pays income for a specified period, for example ten years. The amount of income paid does not depend on the age or the sustainability of the people who buy the annuity (called anuitan). The amount of income paid depends only on the premiums paid into the annuity, the length of time payments, and investment returns accumulated. Annuities provide a fixed amount of income within a certain amount until the balance of premiums and investment returns are paid out.

Lifetime annuity provides income for the remaining life of anuitan. A variation of lifetime annuities continues to provide income for up to two pairs anuitan died (joint-life annuity). The amount paid depends on age anuitan, premiums paid into the annuity, and investment returns are accumulated.

Types of lifetime annuities are used as retirement benefits in Indonesia (as in civil and military) generally provide periodic payments every month until the lifetime of the main participants, then proceed spouse (widow / widower) of 60% of the monthly benefit the main participants, then down to son for 33.33% of pension benefits widow / widower of a maximum of up to three children who have not reached age 25, unmarried and has not worked.

In a lifetime annuity, a source of income comes from three “wallet”: Your investment, investment earnings and money from a pool of people in your group who died first from you. This is a typical setting on the annuity, which allows companies to guarantee the annuity income for life.

Annuities are contracts in which insurance companies provide regular payments in return for the premiums you paid. Annuities are generally purchased for retirement income.

Annuities have benefits in every situation:

• For people who are rich, buy an annuity to secure future income, even if their assets are missing. They get the certainty of income.
• For people with modest wealth, annuities can help provide a sustainable source of income so that it remains financially independent in the old days. In addition, they will be free from the hassles of managing investments and assets.

There are many categories of annuities, which can be classified according to the nature of the underlying investment, the accumulation period, the nature of commitment and payment of premium setting.

Do you not know where your money remains? Get a grip on your budget by laying a sound financial administration. How you doing? No problem. Here are 10 tips.

Tip 1: Identify your income and expenses. Make a list of your monthly income: salary, health care, rent, child allowance et cetera. Do the same with your expenses: rent or mortgage, insurance premiums, subscriptions. Do not forget the other costs like entertainment, clothing, birthdays and such mapping. Part off the annual expenditure by twelve. Pull off the expenses on your income and you know what is your monthly budget. Read the full story