Budget Definition, Meaning & Synonyms

December 18, 2020by admin

budget definition simple

Having a handle on your monthly income and expenses allows you to make sure your hard-earned money is being put to its highest and best purpose. For those who enjoy an income that covers all bills with money left over, a budget can help maximize savings and investments. A budget, also known as cash flow, is arguably more important than the actual cash that you have in your bank and investment accounts.

An enterprise application developed as a tool to assist agencies in building all components of the decision package and submitting operating and transportation budget requests on line. Proposals that cover a wide range of financial contracts that call for the development or use of space by state agencies through a contractual arrangement with a developer or financing entity. The sale of debt obligations, Certificates of Participation through the State Treasurer may be involved, or financing may be offered by a private developer.

Ways to Budget When You’re Broke

Time frames for forecasts will vary according to the purpose (i.e., type) of forecast being prepared. Forecasting clarifies trends, needs, and issues that must be addressed and evaluated in the preparation of budgets. For example, enrollment forecasting may reveal growing student populations and focus attention on the need for increased resource allocations for staff, facilities, or both.

budget definition simple

The focus on long-range planning is the major advantage of this approach, and advocates believe that organizations are more likely to reach their stated goals and objectives if this approach is used. Put simply, a budget is “a plan for the coordination of resources and expenditures” (“Definition of BUDGET”, 2021). Your resource is your income and your expenditures are the purchases you make. More specifically, it is the “amount of money that is available for, required for, or assigned to a particular purpose” (“Definition of BUDGET”, 2021). Basically, a budget is a spending plan that maps out the amount of income versus the amount of expenses during a specific period of time. Many bills such as housing costs, utilities, subscriptions, and more are due on a monthly basis so the typical budget is prepared for an entire month.

Examples of budget

Title to the property involved may transfer to the state either upon exercise of an option or at the termination of the contract. These goods and services provided by governments are generally considered critical to the public interest and welfare. At Southern Wesleyan, we understand the needs and commitments of busy adults. Our career-ready online programs are specifically designed to allow you to earn a degree online while still meeting your personal and professional responsibilities.

  • This can help you determine how much to budget for any expenses that may change from month to month.
  • Oftentimes with budgeting, the best budget is the one you can maintain without losing consistency.
  • The Budget facilitates planning – Once company objectives are established and codified through a budget, it can be assured that the other business strategies are equally realizable.
  • Individuals often create household budgets that balance their income and expenditures for food, clothing, housing, and so on while providing for some savings.
  • An essential tool for managing both incoming and outgoing financial flows is budget planning and preparation.

Budget requests and reports are summarized in terms of a few broad programs rather than in the great detail of line-item expenditures or organizational units. PPB systems place a great deal of emphasis on identifying the fundamental objectives of a governmental entity and budget definition simple on relating all program expenditures to these activities. This conceptual framework includes the practices of explicitly projecting long-term costs of programs and the evaluation of different program alternatives that may be used to reach long-term goals and objectives.

Advertising budget resources for sponsored ads

Businesses create their cash budgets by making assumptions about their production and sales forecasts, forecasting their payables and receivables, and more. Budget is the money to be spent on a project, or by a person or organization in a time period. It usually lists the various things that are to be done, and how much to spend on each. For example, a construction budget may list the various kinds of material and labor and the money to spend on each. You’ll need to calculate every type of income you receive each month.

  • The prestigious building project is budgeted in great detail, from warf facilities to the protocollary opening.
  • Don’t forget to include any other sources of income, such as Social Security, child support, side hustles, and more.
  • Individual decision units are then aggregated into decision packages on the basis of program activities, program goals, organizational units, and so forth.
  • For more detailed budgeting, you can plan your needs and wants based on your estimated income or the amount you expect to earn over the course of the budget’s time period.

The planning and management process for information technology resources and investments overseen by the Office of the Chief Information Officer. Uniform minimum standards for financial accounting and reporting. They govern the form and content of the financial statements of an entity.

As part of the budgeting process, it’s helpful to review a few months of previous expenses to see what you actually spent. This can help inform your budget so you’re not guessing and can match where you actually are, not just where you want to be. For example, you may not need to track as rigorously if you feel you’re prioritizing savings and preparing for the future. Paying yourself first and meeting savings goals and not worrying as much about other expenses is sometimes referred to as the “Anti-budget” from Paula Pant of Afford Anything. Budgets can provide much-needed insight into what you’re bringing home each month and where that money is actually going.

budget definition simple

It is a technique that is applied in addition to the regular design process. Capital budget appropriation that reauthorizes the unexpended portion of previously appropriated funds. Because capital projects often overlap fiscal periods, it is necessary to reauthorize some expenditure authority to ensure project completion. A quantitative indicator that can be used to determine whether an agency’s programs or services are directly contributing to the achievement or progress toward some objective.

What is a simple definition of budget for kids?

A budget is a plan for saving and spending. It looks at the money you get and the money you want to spend. By comparing the money you have coming in and going out, you can see what you can afford to spend, or where you need to cut back.


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    Copyright 2020 ASITA. All rights reserved.