Budgeting is the process of creating a plan for the spending of money. Businesses and even Governments plan budgets to assess how much they expenditure they can afford while ensuring that their net income is greater than their expenditure at all times. It is possible to prioritize what should be invested on if there isn’t sufficient disposable income to buy all that is needed and instead focus on the most necessary things. It is a method to keep the finances on track, while funding current projects and also planning for future commitments.
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