What are the different types of budgets?

Based on the relationship between estimated incomes and expenses, budgets can be categorized into surplus, balanced, and deficit ones. A surplus budget is a plan with incomes exceeding expenditures during a certain period. In surplus budgets, expenses can be fully covered by incomes, and the residuals can be saved for future use.

What does a budget a mean?

A is a written plan that outlines how you’ll spend your money each month. You’ll have a balanced budget: This means your income equals your expenses and you aren’t spending more money than you make. You’ll have a deficit: This means you’re spending more than you make and possibly going into debt.

What is a budget based on?

A budget is a spending plan based on income and expenses. In other words, it’s an estimate of how much money you’ll make and spend over a certain period of time, such as a month or year. (Or, if you're accounting for the incoming and outgoing money of everyone in your household, that's a family budget.)