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Budget

Budget is the estimation of revenues and expenses for a definite period of time in the future. It is used by individuals, families, businesses, companies, governments and various other organizations to measure their plans and activities for that specific period of time, in monetary terms.

Types of Budget

Majorly, there are two types of budgets, such as:

1. Static Budget is that kind of a budget that remains unchanged for the entire time period. It doesn’t account any change in concerned factors that are occurring in between. They are good when you are supposed to find out the effectiveness of the original budget.

2. Fixed Budget is the kind of budget that changes with the change in factors such as a change in production, sales, company policies, etc. Such budgets are accurate as it calculates each and every change that has occurred within that particular time period.

Importance of a Budget

A budget creates planning on how you wish to spend your money. There are a few more reasons on how a budget can be beneficial for you:

  • It helps you achieve your long-term goals, by making you save a certain amount of money each month.
  • When you plan your finances cleverly with a budget, then you do not have to worry about the unexpected emergencies of life.
  • A budget will never let you spend excessively and hence will always keep you out of debts.

References:

1. Wikipedia https://en.wikipedia.org/wiki/Budget

2. Investopedia https://www.investopedia.com/terms/b/budget.asp

3. Investopedia https://www.investopedia.com/financial-edge/1109/6-reasons-why-you-need-a-budget.aspx

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We are registered with Utah's Department of Financial Institution to provide Consumer Credit. If you submit this application via the internet to us, we will receive and process it the same as if you submitted it to us in person thereby making Utah the place of negotiation, execution and performance of all applications and/or agreement. If we approve your application, the funds will be disbursed from our account in Utah. Utah law governing consumer loan agreements may differ from the laws of the state where you reside. Applicant is responsible for complying with all statutory obligations regarding obtaining loans by internet that may exist in their state of residence. This service may or may not be available in your particular state.

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