Budgeting Process

The budgeting process involves planning how to allocate financial resources for a specific period, typically a year. It starts with setting goals and estimating income, followed by identifying expenses. Each category of spending, like housing or entertainment, is assessed to ensure total expenses don’t exceed income. Once a budget is created, it serves as a guideline to track spending and adjust as needed throughout the period. Regular reviews help to maintain financial control, ensuring that goals can be met without overspending, ultimately promoting better financial health.