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Finance

What is Budgeting?

Budgeting is planning how you'll spend and save your money before you spend it. You map your income against your expenses, give every rupee a job, and make sure you're saving some — so money runs your goals instead of running out.

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Watch a 2-minute lesson with voice + animation that explains budgeting.
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Key things to understand

  • 1A plan for spending and saving your income.
  • 2Match what comes in against what goes out.
  • 3Give every rupee a purpose before you spend.
  • 4A simple rule: 50% needs, 30% wants, 20% savings.

Frequently asked questions

How do I start budgeting?
List your monthly income, list your expenses, subtract one from the other, and decide where to cut or save until you spend less than you earn.
What is the 50/30/20 rule?
A simple budget: spend about 50% of income on needs, 30% on wants, and save or invest the remaining 20%.
Why is budgeting important?
It keeps you out of debt, builds savings for emergencies and goals, and reduces money stress.

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