Budgeting

• Budgeting


  The process of matching our expected income with the expected expenditure for a particular period of time
• Household Budget


  A written plan for our expected income and expected expenditure
• Budget


  • Allows households to see how much income is needed for important bills
  • Shows how much money is left for discretionary purchases
  • Helps the household to see if they need to reduce planned spending
  • Shows which months will have lots of bills / expenses
• Budget Surplus


  Expected income is greater than expected expenditure
• Budget Deficit


  Expected income is less than expected expenditure
• The budget is the financial plan that outlines how much money will be spent on different items over a specific period.