What is a budget and why have one?
0 views
A budget is a financial plan that tracks income and expenses over a set period, usually monthly. Having a budget helps you understand where your money goes, prioritize spending, save for goals, avoid debt, and build financial security. Start by listing all income sources, then categorize expenses as fixed (rent, utilities) or variable (entertainment, dining). Use the 50/30/20 rule as a guideline: 50% for needs, 30% for wants, 20% for savings and debt repayment. Review and adjust your budget regularly as circumstances change.