The budget process is reconciling your financial realities to your financial dreams. The process of creating a budget can be instructive. Creating a budget involves projecting realistic behaviour. Your assumptions may come from your actual past behaviour based on accurate records that you have gathered. If you have been using personal finance software, it has been keeping those records for you; if not, a thorough review of your bank and credit card/ investment statements will reveal that information. Financial statements are useful summaries of the information you need to create a budget.

Importance of Budgeting:

Methods of Budgeting:
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