Short definition: Budgeting is the process of creating a plan for managing income and expenses over a specific period.
Explanation: Budgeting involves estimating future income and expenses, allocating resources, and setting financial goals. It helps individuals and organizations track their spending, control costs, and make informed financial decisions.
Example: A company might create an annual budget that outlines its expected revenue, expenses, and profits for the year. The budget can be broken down into smaller categories, such as marketing, sales, and operations, to track spending in each area.
Additional information (optional): There are various types of budgets, including personal budgets, family budgets, business budgets, and government budgets. Budgeting can be done using spreadsheets, budgeting software, or simply pen and paper.
Meta description for the website (Glossary entry “Budgeting”):
Learn about budgeting and its importance for financial planning and management. Understand the different types of budgets and how they can be used to track spending, control costs, and achieve financial goals.