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Types of budgeting depend on the use of the budget which could either be personal or business budgets. Business and Personal Budgets. Budgeting is simply the creation of a plan to properly manage money. A budget usually covers a period of time; for instance, a one-year or five-year budget plan.
Budgeting may be carried out by individuals or by companies that wish to estimate whether they can continue to operate within the projected income and expenses. A budget can be drawn up for each financial year and contains information on the estimated value of sales and value of costs.