Most everyone has dealt with a budget sometime in his or her life, whether it is a household budget or learning about budgets in high school. A household budget helps the family ensure that there is plenty of money for all of the household bills, food, and even some entertainment on occasion. When it comes to a business, it is vital that a budget is followed and kept up to date. What many people do not realize is that there are different types of budgets. The type, or format, of budget that is chosen by the company would also depend on what type of business is performed. Two types of budgets will be discussed as well as the pros and cons associated with these types of budgets.