We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Budget Control?

Malcolm Tatum
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Budget control is a term that is used to describe the process of managing individual line items within a household or business budget so that expenditures over and above the allocated amounts do not take place. This type of control is necessary in order to make sure that operational expenses do not exceed the projected revenue for the period, creating a net loss. There are several elements that go into the task of budget control, including the preparation of a realistic budget, monitoring income levels, and engaging in comparison shopping before actually executing any purchases.

The first step in effective budget control is the creation of a budget that is based on factual information regarding the revenue needed to operate the household or business effectively. This means using information obtained from consumer markets regarding the prices of different goods and services that will be consumed each month. As part of the process, budget control involves making sure that fixed costs are accurately reflected within the budget, and any items that are considered flexible or floating are covered with a budget amount that reflects the standard and usual usage of the operation.

Once the workable budget is in place, the process of budget control focuses on making sure that expenditures for any particular line item remain within the budgetary amount that applies. At times, this may mean reducing consumption in order to prevent going over the budget on a particular line item. For example, if a household has a monthly budget of $500 US dollars (USD) for food and has consumed $300 USD by the second week of that monthly period, budget control will require that the household find ways to spend no more than $200 USD on food for the remainder of the month. This may mean adjusting the consumption of different foods, substituting higher priced purchases with other foods that are less costly.

It is important to note that budget control usually involves attempts to not only keep within the budget, but to also save money when and as possible. Here, the goal is to purchase the items covered in the budget for as little money as possible, creating a small amount of surplus each month. In order to accomplish this, managers will compare prices on similar goods and services, eventually choosing the one that offers the best price while still providing an acceptable level of quality and service. For instance, a household may choose to migrate to a prepaid cellular provider that works out to half the cost of a current provider, based on the fact that the household only consumes a certain number of minutes per month. Assuming the prepaid provider offers the same quality of service as the previous carrier, this budget control strategy reduces the cost for that budget line item for the month, making it possible to either allocate those savings to another line item, place the surplus into an interest-bearing account, or even enjoy a treat that is outside the scope of the monthly budget.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.
Discussion Comments
By donasmrs — On Oct 26, 2013

@SarahGen-- I highly recommend using a monthly budget planner. You can even use a budget planning software, whatever makes things easier for you. A budget planner helps you allot your budget according your needs so that you don't splurge. It will teach you self-control as well.

If you can, ask your employer if you can get paid every two weeks instead of once a month. That will prevent you from spending too much at one time.

By SarahGen — On Oct 25, 2013

@donasmrs-- Can you give me some advice on how I can manage with my personal budget?

I'm not good with money matters at all. I tend to splurge in the beginning of the month and I don't have anything to spend later on. You have no idea how I look forward to that next paycheck!

By donasmrs — On Oct 25, 2013

I think that almost every wife and mom is an expert at budget control. My mom was definitely an expert. She was a housewife who had never worked, but without her, there was no way that my dad could have made ends meet. She knew how to save money and she made sure that everyone's needs were fulfilled. My dad didn't make a lot but I don't ever remembering not having something that I needed while growing up.

I appreciate my mom more now that I am married. I've understood how difficult it is to manage a household with a limited budget. I call her and ask her for advice all the time! Budget planning is a lot of work.

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
Learn more
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.