What is a budget primarily used for in financial planning?

A budget is primarily used for establishing positive cash flow in financial planning because it helps individuals and organizations outline their expected revenues and expenses over a specific period. By forecasting income and categorizing expenses, a budget allows for effective resource allocation, ensuring that expenditures do not exceed income. This proactive approach enables better financial management and aids in achieving financial goals.

While tracking investments, determining credit limits, and calculating taxes are all important financial considerations, they do not specifically target cash flow management in the same comprehensive way that a budget does. A well-planned budget supports financial stability by promoting spending within one's means and can provide insights for making informed financial decisions, ultimately leading to positive cash flow.