Budget

A budget is a plan that shows expected income and expenses over a set period, such as a month or a year. It helps individuals and organisations manage their money by tracking all sources of income, such as salaries, investments, dividends or company revenue; estimating expenses, such as rent, mortgage, utilities, and variable costs like groceries and entertainment. A budget helps to define short-term and long-term financial goals, such as setting aside savings for a holiday, or paying off debt, and helps people and organisations to monitor spending by comparing actual spending against their budget. This is a crucial part of financial literacy, and helps with financial discipline and avoids overspending, with the ultimate aim of being able reach financial goals.