What is Budget? By Finschool.5paisa

Two friends, Namita and Aman were on a coffee date where Aman spilled coffee on his shirt.

Oh God, I don't have the budget for a new shirt.

Aman had tried several times to create a budget for himself but it kept falling apart. Listening to Aman's struggles, Namita gave him some advices

She suggested him to begin again by getting his basic proportions right.

A well-proportioned budget would give him increased Security, Flexibility and Efficiency in terms of money

For example, he could use 40% of his net income = Needs 30% of his net income = Wants and 30% of his net income = Saving

To stay on top of his budget and not to fall again he could use any digital platform to track it.

A budget is an estimation of revenue and expenses over a specified future period of time evaluated on a periodic basis. Budgets can be made for an individual, a business or a government. It is a way to track finances and allocate money in the best way possible.