A budget is a plan that helps you track your income and expenses over time—weekly, monthly, or annually. You can list all your spending or group it into categories; there's no one right way to do it. You can write your budget by hand, use a spreadsheet, or try a budgeting app to manage your finances.
Why does Budgeting matter?
Budgeting is about managing your money and making a plan that includes both necessities and fun. It helps you live within your means and achieve your financial goals, like paying off debt, saving for a big event, or building an emergency fund.
The 50/30/20 rule is a helpful budgeting guideline. After taxes, use 50% of your income for living expenses like housing and food, 30% for discretionary spending on things you want, and 20% for future goals, such as saving, investing, or paying off debt.