Budget

A financial plan that estimates your expected income and expenses over a set period, usually monthly or annually.

Without a budget, spending creep silently erodes profit. A budget forces you to assign every pound a purpose and alerts you when reality diverges from the plan.

Monthly budget: Revenue target £6,000 | COGS £1,800 | Marketing £600 | Subscriptions £150 | Fees £200. If actual revenue hits £4,000, the budget immediately shows where to cut.