When it comes to financial budgeting, there is no legality involved in most instances. Individuals have the responsibility of setting their own budget and therefore using it to attain their financial goals. That said, in some situations, a family or a single person might be required to develop a budget and adhere to it based on the laws of the state. For example, in a bankruptcy filing, especially when an individual files for Chapter 13 bankruptcy, it is necessary to develop and maintain a budget to show that the expenses are receiving payment as directed by a court of all. Most businesses will be required to have an accurate and well-documented financial budget as well. This provides the necessary transparency required to maintain financial documents and to ensure that funds are not being misspent. Financial budgeting is a method of managing money based on money coming in and expenses paid.