Estimate of costs, revenues, and resources over a specified period for a specific individual that is used to properly plan for known current and future financial items. To create a personal budget, an individual will usually take the following steps: 1- Identify how much money will be received during the budget period, 2- Evaluate all possible expenses, and 3- Plan accordingly so that he/she stays with the budgetary restraints established. "During these tough economic times, Paul has started following a personal budget in order for him to remain financially stable."

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