Budget: (n) an estimate of income and expenditure for a set period of time.
Sometimes I think the word “budget” was created so that the word “over” can be used more often.
In other words, we can account for many things as human beings:
- We can tally.
- We can work.
- We can place things in envelopes.
But none of us are prepared for the surprises. Usually, those unplanned happenings are negative and not positive.
For instance, your car never tells you that it grew another transmission. That would be nice.
This is why, when we play Monopoly, and we pick the card that says “Bank error in your favor. Collect $100,” we almost feel like crying.
What is the value of a budget? The greatest purpose for a budget is to confirm that we have the possibility for solvency in the first place. Without such a consideration, we can launch a ship and run out of supplies in the middle of the ocean.
It’s called “counting the cost.”
And even though it doesn’t solve all problems, it at least informs us that if the wind blows just right, the figures we put on paper have half a chance of covering the need.