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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 and financial forecasting are financial planning techniques that help business personnel in the decision-making process. Budgeting uses estimation to quantify the expectation of revenues a business wants to achieve for a future period, whereas financial forecasting is used to estimate the amount of revenues that will be achieved.