Difference Between Budget and Save (With Table)

Budget and save are a part of microeconomics and our daily economic lives. Both the term help us to keep an account of expenditure, receipts, revenue generation, and other such important economic practices. It makes us aware of our economic needs. However, they may sound similar, but they are not.

Budget vs Save

The main difference between budget and save is that budget is a financial estimation of the income and expenses for a while, on the other hand, save is the amount of money that has been kept separately from the current income for future use. If budget helps us to keep an account of our daily needs, then save helps us to have an idea that there are some saved money that will help one financially if to be needed in case of any extremity.

A budget is a financial plan for a definite period. It is a way of balancing income, spending, and financial targets for a while. It has two main components: Receipts and Expenditures. For example, a household budget will include the entire expenses and plans for the household. Thus, a budget is a plan to utilize the money in a well-organized system.

Save is the amount of money that has to be kept aside for further use or an income that will not be used for immediate consumption. It is just consuming less in the present while saving more for the future. Save can be on the national, private, or public level depending on stakeholders planning it. For example, people save money for their after-retirement plans, holiday trips, medical emergencies.

Comparison Table Between Budget and Save

Parameters of Comparison




Budget is the estimated amount of money planned for further use.

The amount of money that is kept aside from the total budget for future uses is called save.

Part of

The budget does not include save.

Save is a part of the budget.

Kind of tool

A spending tool.

A security tool.


It is usually for a specific.

It can be for days, months, and years.


It acts as the guiding force for overall spending and providing financial stability.

Save gives us a kind of insurance for any financial emergency.

What is Budget?

The word budget is derived from the Old French word bougette, which means a small leather purse.

A financial statement including revenue, expenses, sales, assets, liabilities, costs for a certain period is called a budget. It is usually compiled and can be revised whenever the need arises to do it.

The Budget can be prepared for a person, a group of people, a business, a government, a company, or any organization that makes money.

The term budget was first used in the pamphlet The Budget Opened by William Pulteney, where it was used to describe and criticize the government’s fiscal policy on tobacco and wine.

The process of compiling a financial budget is known as budgeting.

Three types of budgets are as follow:

  1. When the amount of expenses is equal to the revenues, it is called a Balanced budget.
  2. When the amount of receipts is more than the expenditure, it is known as the Surplus budget.
  3. Deficit budget is when the expenditure is more than the number of receipts.

A Budget can be created by identifying their monthly income and monthly expenses.

A budget analyst is a professional who evaluates the budget proposals to prevent any misconduct.

What is Save?

Save is the portion of one’s assets that are kept aside for future uses. This asset is generally in monetary terms.

The process to save an amount or the result of the saved amount is known as saving.

Save can be done through various methods. Keeping some cash aside; pension account; deposit account; investment in buying profitable assets like stocks, property; regular deposits, money markets, and certificate deposits.

The Regular deposit helps people with regular income to deposit a fixed amount of money every month.

The money market helps people to get easy access to their money.

A certificate of deposit holds the deposit until the time of maturity.

The part of income that has been saved is known as the average propensity to save. Marginal propensity to save is the portion of an increase in income not used in spending but used in saving.

Save not only allows financial security for the future but is also an assurance in any emergency that might happen in the future. But only if it is deposited into a financial mediator such as a bank.

For an ordinary person, the act of save shows the preservation of a sum of money for further use.

Main Differences Between Budget and Save

  1. Budget is the estimated amount of money for efficient management and use of financial resources, whereas save is the amount of money that is kept aside for emergency purposes.
  2. Budget can’t be included in save while save is a part of the budget.
  3. The budget is a spending and management tool, while save is an increment and security tool.
  4. The budget is usually prepared for a specific period, whereas save can be for days, months, and years, depending on the money required to save.
  5. The budget provides a structured way of planning the expenses and receives to smoothly facilitate future goals while save gives financial assurance in any financial emergency.


A budget is the financial estimation of one’s expenses and gains while making a route to manage the assets adequately. However, save is a part of that gained money which is kept in a different account to ensure one’s financial security.

Both of them have their significance. One helps in making a plan for the available assets for a definite period, and the other one helps in ensuring financial safety and security time ahead.

The budget will remind us that we have to make our financial expenses in an ordered way while save will tend to save or help us in any situation of crisis.


  1. https://www.jstor.org/stable/2111078
  2. https://www.sciencedirect.com/science/article/abs/pii/S1573447188010137