What "budget" means in finance

A budget is a financial plan that outlines expected income and expenses over a specific period of time. It helps individuals or businesses manage their financial resources and achieve their financial goals. A budget typically includes categories for income, fixed expenses (such as rent or mortgage payments), variable expenses (such as groceries and entertainment), savings, and investments. The purpose of a budget is to provide a clear picture of current and future financial health and to make informed decisions about spending and saving.