Answer: A budget is a financial plan that outlines expected income and expenses for a specific period of time. To make a budget, you need to list all sources of income and all expenses, including fixed expenses such as rent or mortgage payments and variable expenses such as groceries and entertainment. Once you have listed all income and expenses, you can calculate the difference between the two to determine if you have a surplus or deficit.
To balance a budget, you need to ensure that your expenses do not exceed your income. If you have a surplus, you can allocate the extra money towards savings or paying off debt. If you have a deficit, you will need to find ways to reduce your expenses or increase your income to balance your budget. This can be done by cutting back on discretionary spending, finding ways to save on necessary expenses, or finding additional sources of income.
Step-by-step explanation: