---
title: "What is Budget?"  
description: "What is Budget?"  
author: "Gurmeet Kaur"  
published: 2018-06-17  
canonical: https://answers.mindstick.com/qa/45275/what-is-budget  
category: "history, politics & society"  
tags: ["politics and government"]  
reading_time: 2 minutes  

---

# What is Budget? 

What is Budget? \
\

## Answers

### Answer by Stuti Gupta

## What is a budget?

A [budget](https://en.wikipedia.org/wiki/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. \

## What is a budget's purpose?

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](https://answers.mindstick.com/qa/94657/what-are-the-types-of-civil-suits-in-india-against-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**.


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Original Source: https://answers.mindstick.com/qa/45275/what-is-budget

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