Budgeting is the process of creating a plan to track your income and expenses, helping you manage your money and reach financial goals.

Budgeting is the process of creating a plan to manage money by estimating income and expenses over a specific period, such as a month. It serves as a financial roadmap that helps individuals, households, businesses, and governments track where their money goes, control spending, and allocate funds toward priorities like savings, debt repayment, and essential bills. By regularly reviewing this plan, people can gain financial clarity, reduce stress, and work toward long-term goals. Common methods include the 50/30/20 rule and zero-based budgeting, though the most effective approach is one that an individual can consistently maintain.

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