Budget Planning

Budget planning is the process of creating a financial plan that outlines expected income and spending over a specific period, usually one year. It helps individuals and organizations allocate resources effectively, prioritize expenses, and set financial goals. By tracking income sources, such as salaries or sales, and estimating costs for necessities like housing, food, and other expenses, budget planning ensures that spending does not exceed income. This proactive approach enables better financial decision-making, reduces the risk of debt, and helps achieve savings or investment objectives, ultimately leading to greater financial stability and security.