Budgeting

Budgeting is the process of creating a plan to manage and allocate financial resources over a specified period, typically encompassing income and expenses. It involves estimating future financial outcomes, setting financial goals, and preparing a detailed outline of expected revenues and expenditures. The primary purpose of budgeting is to ensure that individuals, businesses, and organizations can effectively control their spending, save money, and make informed financial decisions while achieving their goals. A well-structured budget helps track financial performance, identify areas for cost reduction or investment, and allocate funds toward priorities. Budgeting can also serve as a tool for measuring actual financial performance against planned objectives, fostering accountability, and promoting financial discipline. It can be executed on various scales, from personal household budgets to complex corporate financial plans.