What is Budgeting and How Does it Work?

Budgeting is a plan for managing your money over a certain period of time, such as a month or a year. It is an estimate of how much money you will earn and spend, and it can also be used to track the income and expenses of an entire family. A budget is a way to calculate and plan for resources, including time, costs, expenses, environmental impacts, assets, liabilities, and cash flows. Companies, governments, families, and other organizations use budgets to express their strategic business plans in measurable terms.