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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.
Zero-Based Budgeting. The zero-based method to formulating a budget starts with a baseline of zero instead of the baseline for the previous yearâs budget. Many government agencies and nonprofit organizations use the zero-based method to construct budgets. In zero-based budgeting, managers must justify every expense.