A budget is a planning which enables us towards operational and financial goals. Consequently a budget may be an idea of as an action plan. Planning a budget not only helps a business but even a family to allocate its possessions, evaluate routine, and originate plans. Though setting up a budget can take place at any time. For business, planning a budget is an annual task in which the past year’s budget is reviewed and an operational budget is made for the next 2 or more than 2 years, whereas the duration of a family budget is one month in which the members or a single member decides the outlines of expenditures according the income. Frequently people sit down to discuss financial issues, they plan annually. A monthly budget is particularly useful for those who have inconsistent earnings. When planning for monthly income and expenses, the solution is to identify that which expense can be linked sophisticatedly to income. Budgets permit you to create some control on what you pay out. A monthly budget can help you to decide how to spend your money, plan for your future, pay off existing liability, and save a few amount each month by reducing improvident and spontaneous purchases.