Finance
What is A budget?
A budget is a plan for how you'll spend and save your money over a period. It maps income against expenses so you can live within your means, avoid debt, and reach financial goals.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a budget.
Key things to understand
- 1It lists expected income and planned spending by category.
- 2A common rule of thumb is 50% needs, 30% wants, 20% savings.
- 3It reveals where money leaks and frees up money for goals.
- 4Tracking actual vs planned keeps it honest.
Frequently asked questions
- How do I make a budget?
- List your income, total your expenses by category, and allocate every unit of money so spending plus saving fits your income.
- What is the 50/30/20 rule?
- A guideline: spend 50% on needs, 30% on wants, and save or invest 20%.
- Why is budgeting important?
- It prevents overspending, reduces debt, and steadily moves you toward financial goals.