budget
Definition
A budget is a financial plan that estimates your expected income and expenses over a set period of time, such as a month or a year. Businesses use budgets to make sure they are spending within their means and planning ahead for future costs.
Example
If your shop expects to bring in $10,000 next month and plans to spend $7,000 on rent, supplies, and payroll, that plan written out is your budget.
Watch Out
In legal contracts, the word budget can take on a binding meaning, so if a contract references an approved budget, you may be legally restricted from spending beyond those agreed-upon numbers without getting permission first.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.