In simplest terms a budget is a spending plan that tracks your income and your expenses, you estimate how much money you spend and make over a period of time (weekly, monthly, annually etc.). It can involve making a comprehensive list expenditures or focusing on categories, there is no right way to create your budget. You can write it out by hand, use a spreadsheet or a budgeting app to help you manage your money.
Why does Budgeting matter?
Budgeting is about taking control of your money and creating a plan for your money (this includes the fun stuff). It encourages you to live within your means and make your money work for you in the best way possible.Think of it as a financial step to your money goals. Your money goals could be anything from: paying off debt, saving money for a big event, setting money aside for emergency etc.