Budget: n. an estimate of income and expenses for duration

Having a household budget is very important even though many do not budget their money and live on a paycheck by paycheck basis. Even huge institutions like governments have a budget which is often exceeded in reality and incurs greater debt on a yearly basis.

Living within your budget is financially sound practice and far too many humans and institutions are no longer practicing sound financial management and living within their budget. If you have more than just temporary debt then you realistically are not budgeting correctly.


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