Budgeting

Budgeting is the process of creating a plan to allocate financial resources over a specific period, typically a month or a year. It involves estimating income and expenses, determining spending priorities, and setting limits on expenditures to ensure that financial goals are met. The primary objective of budgeting is to maintain control over one’s financial situation, avoid unnecessary debt, and enhance savings. A budget can be used by individuals, families, businesses, or governments to manage their finances effectively. It often includes monitoring actual spending against the budgeted amounts to make necessary adjustments and stay on track financially.