A financial plan that estimates income and expenses over a period of time.
A budget is a detailed plan that outlines your expected income and anticipated expenses over a set period—typically monthly or annually. Creating a budget helps you track spending, control costs, save for goals, and avoid overspending. Common budgeting methods include 50/30/20 (50% needs, 30% wants, 20% savings), zero-based budgeting (where every dollar is allocated), and envelope budgeting (allocating cash to specific categories). A budget is a living document that should be reviewed and adjusted regularly as your income or expenses change. Even a simple budget can dramatically improve financial awareness and help you achieve long-term goals.