What is budget?
A budget is a plan that outlines how an individual, organization or government intends to spend their money over a given period of time. Budgets typically include estimates of income and expenses, and may be used to plan for the future, to track spending, or to assess whether an individual or organization is meeting their financial goals.
Why budget is created?
A budget is created to help an individual or organization plan for the future, track their spending, and ensure that they have enough money to meet their financial obligations and achieve their goals.
Creating a budget involves estimating an individual or organization's income and expenses for a given period of time, and then comparing these estimates to determine whether the individual or organization has enough money to cover their expenses and save for the future. This process can help individuals and organizations to identify any potential financial shortfalls, and to take steps to address these shortfalls before they become a problem.
How budget is created?
There are many different ways to create a budget, and the specific approach will depend on the individual or organization's needs and goals. Some common methods for creating a budget include using a budgeting app or software, using a budgeting template or spreadsheet, or creating a budget manually using a pencil and paper. Regardless of the method used, the goal of a budget is to help individuals and organizations manage their money more effectively and achieve their financial goals.