What best describes a budget?

A budget is best described as a financial plan that estimates income and expenses for a specified future period. It serves as a roadmap for managing finances, allowing individuals or businesses to project their financial situation based on anticipated revenue and planned expenditures. By defining expected income and outlining how much will be spent in various categories, a budget helps guide decision-making and ensures that spending aligns with overall financial goals.

This approach enables individuals and organizations to allocate resources effectively, manage cash flow, and identify potential shortfalls or surpluses in finances. Overall, a budget is a proactive tool that aids in financial management and planning for various scenarios, making it essential for achieving financial stability and growth. Other options do not capture the essence of what a budget represents in financial planning.