Budgeting

Budgeting is the process of creating a plan to allocate financial resources over a specific period, typically a year. It involves estimating income and expenses to ensure that individuals, businesses, or organizations can manage their finances effectively, meet their financial obligations, and achieve their financial goals. The budgeting process includes analyzing current financial situations, setting financial objectives, and determining how to best allocate funds to different categories such as savings, expenses, and investments. Budgets can be flexible or fixed and can be adjusted as financial circumstances change. Effective budgeting helps in tracking spending, controlling costs, and enhancing financial decision-making.