A budget is an estimate of revenue and expenses for a given future period of time that is usually compiled and re-evaluated on a regular basis. Budgets can be created for an individual, a group of individuals, a business, a government, or just about anything else that generates and spends money. No one, whether government, business, or individual, has an unlimited amount of money to spend; therefore, the prudent way to spend is to "cut your coat according to your cloth."