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What is Budget?

Updated October 22, 2026

A budget is a plan for how you'll spend and save your money each month.

It shows where every dollar goes before you spend it.

A simple rule is splitting income into needs, wants and savings.

A budget isn't about saying no to fun. It's about choosing on purpose.

Example

You plan $1,200 for rent, $400 for food, $200 for fun and $300 for savings.

Questions people ask

What's the easiest budget?

Many start with the 50/30/20 split.

Do I need an app?

A notes app or spreadsheet works fine.

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