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budget

noun B2 Neutral

Meaning

A budget is a detailed plan that outlines expected income and expenditures over a specific period, often used to manage finances effectively.
💡 A common mistake is to confuse "budget" with "spending," as a budget is a plan rather than actual expenses.

Example Sentences

The company approved the budget for the upcoming financial year .
We need to check the budget before buying new furniture .
What is the monthly budget for your household expenses ?

Word in Context

Anna checked her bank account and decided to make a simple plan for the month . She wrote a list of expected expenses and small savings to create a realistic budget before paying the bills . If she cut down on coffee and a few shopping trips , she would be able to save for a short weekend trip . Her plan was practical and calm , and she felt more confident about her finances as the month began .

Common Phrases

annual budget household budget budget cuts

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