A plan for how you will spend and save your income over a set period.
A budget is a spending plan based on your income and expenses. It helps you allocate money to needs, wants, savings, and debt repayment so you can live within your means and reach financial goals.
If you earn $3,000 per month, a 50/30/20 budget sets $1,500 for needs, $900 for wants, and $600 for savings or debt.