Q:
What is the purpose of a budget?
A:
Quick Answer
The purpose of a budget is to ensure that a household's or business's expenses do not amount to more than the income. A budget can also help individuals properly allocate money to different categories to ensure that all of the basic needs of the family or company are met.
Continue Reading
Credit:
Blend Images/Hill Street Studios
Brand X Pictures
Getty Images
Full Answer
There are many different kinds of budgets, but one popular option is the zero-based budget. In these types of budgets, the income is divided into categories until there is nothing left unassigned. This is where the zero comes in. A budget only works, however, if it is adhered to, and if more is spent in a category than was allotted, the budget will be considered in the red.
Learn more about Household BudgetsSources:
Related Questions
-
Q:
What is a monthly budget form?
A: A monthly budget form, also known as a monthly budget worksheet or household budget worksheet, is a planning tool used to weigh household income versus hou... Full Answer >Filed Under: -
Q:
What are the basics of devising a family budget?
A: Some of the basic rules to keep in mind when devising a family budget include spending less than the income, using cash instead of credit cards, prioritizi... Full Answer >Filed Under: -
Q:
What is a financial budget?
A: The term financial budget refers to projections on an organization's income and expenses both on a short-term basis and long-term basis. According to the E... Full Answer >Filed Under: -
Q:
What are some tips for budgeting your money?
A: To maintain a successful budget, track expenses and set goals for saving and spending, recommends Quicken. Consumers can review bank statements to see wher... Full Answer >Filed Under:
