Audit goals : to reduce inefficient bureaucracy

Changes from EU audit dependent on agreement and extensive analysis.

11:28 25 July 2013

There was an audit of current EU powers and proposed changes would require the agreement of the other 27 EU nations. Some feel this is in preparation of leaving the EU but, Ministers are saying the audit is simply a long overdue event and that the goals are to reduce ineffective bureaucracy.

Thankfully we don’t usually have to go to such extremes in our own personal finances, but we do still have to do a certain amount of analysis on some financial decisions.  Here are a few things you should consider if you’re facing some weighty financial decisions.

• Actual cost—many decisions don’t give you the full and actual cost up front. Finances are tricky that way and can generate a ripple effect. If you’re looking at another job, for instance, and you will be paid more than your current job you’ll want to calculate the actual cost of taking the job to determine if it is beneficial to your finances.

 

• Consider value—this is not the same thing as the cost. To use the job example from above, you may find that you’re better off to keep your existing job when it comes to your finances. The other job could be in a field that offers improved ability to progress and the chance for further raises. If you only based your decision on the actual cost and avoided the overall value, you might regret your decision. 

 

• Timeframes—this is another important aspect for decisions that involve finances. You may need an immediate tangible benefit, either in value or cost, rather than waiting for potential benefits. Even assured benefits that won’t come to fruition during your necessary timeframe probably won’t fit into your financial picture.

 

• Scenarios—investigate both the best and worst-case scenarios. Looking at the extremes is a good way to determine if your finances can handle the worst possible outcome.