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A Home budget is just like an ordinary budget. However, it is only restricted to a household. Actually while one is living in a household, one has to ensure that the expenses do not exceed the income and there is always some room for savings. That is where a home budget comes in.
A Home Budget basically is a projection of all the expenses undertaken by a household. A list of all the essentials to be purchased is written, along with their prices. Then this list is compared with the household income. The result must always be in positive as if it is negative, it means that you are spending more than your income which is bad.
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