Budget
What is Budget?
A plan for how you will spend and save your income.
Understanding Budget
A budget lists expected income and assigns it to expenses, savings, and debt payments. It turns vague intentions into specific numbers you can track.
Popular approaches include the 50/30/20 rule, zero-based budgeting (every dollar gets a job), and the envelope method. The best budget is the one you will actually keep.
Example
On $4,000 a month after tax, the 50/30/20 rule suggests $2,000 for needs, $1,200 for wants, and $800 for savings and extra debt payments.