A budget is a financial plan that is based on your earnings and expenses. In other words, it's a forecast of how much money you'll make and spend over a given length of time, such as a month or a year. Making a full list of expenses or focusing on a few areas can be part of budgeting. Some people like to handwrite their budgets, while others prefer to use a spreadsheet or a budgeting tool. There is no one-size-fits-all approach to budgeting; what works for one individual may not work for another. The 50/30/20 budget, on the other hand, is one of our favourites. According to this technique, you should spend roughly 50% of your monthly after-tax income on requirements, 30% on desires, and 20% on savings and debt repayment.

Budgeting isn't about deprivation; it's about gaining financial control. Budgeting should not be viewed as a punishment. Remember, this is a budget for all of your money, including money for enjoyment. You are not required to adhere to a fixed budget. It should vary when your circumstances change, such as when you obtain a raise or buy a house. The challenge is to create your budget as unique as possible while still allowing for flexibility.