Coping with Budgetary Pressure

Ray Davis said “A challenge only becomes an obstacle when you bow to it” .The real estate

industry is a challenging option as a career. The Industry boom attracts millions of entrepreneur

who are successful only when they tactfully keep check on each of their move. Mr Sanjay 

Golecha, Director, Wallfort Group – one of the leading real estate giant of MP and

Chhattisgarh puts forward few tips to cope up with the budgetary pressure which keep haunting

the budding entrepreneur.

SANJAY GOLECHA, Director ,Wallfort Group, Raipur, Chhattisgarh

Evaluate the Situation

Before kick starting the project take a moment to sit down and carefully evaluate your

situation. Running around in a panic won’t solve anything and only lead to additional stress.

Understandably, you probably have a million things running through your head and being cool

and collected is the last thing on your mind, but the ability to carefully evaluate your situation

will ensure you make the right choices.

Expenses Prioritized

Prioritizing expenses helps to dilute the pressure situation. Once handling the finances it should

always be taken care that the things which require immediate payment should be addressed first

so that the work flow is not hampered. Priortized check list will make easier to overcome such situation.

Thorough Record of Income and Expenses 

Capitalist must keep thorough records of the income and expenses associated with their

investment properties. Systematic and painstaking records make it easier to prepare reports when

it's time to submit returns to the Internal Revenue Service, and they also help you monitor trends

in order to develop a plan to reduce ongoing expenses.

Depreciation Basics

While meticulously working in real estate industry it’s essential to be aware of depreciation

Basics. Depreciation is a paperwork figure only, and it's often enough to make an incomeproducing property appear to be losing money, even though its cash flow exceeds other annual

expenses. Your real estate probably isn't losing value at the depreciated rate — it's more

likely increasing in value, but in time, the structure will indeed need significant work or it will

eventually fall down. Depreciation allowances help offset those costs.

Identification of deficiencies 

You should have all of the information needed to help you create your budget. So, go ahead

and total up your monthly income and all of your monthly expenses. Subtract your expense

total from your income total and you’ll have either a positive or negative number. If you have a

positive number, congratulations, you are spending less than you earn. Don’t worry if you have a

negative number. The whole reason for creating a budget is to identify deficiencies and find out

how to address them.

Since you can visually see how much you fall short, you can adjust your spending or saving in

certain areas to improve the situation. Oftentimes you’ll realize that by just making a few small

adjustments to your spending habits, you can significantly improve your situation.