Budget
A budget is a plan for how you'll use your money over a set period, usually a week or month.
What it means
A budget is a plan for how you'll use your money over a set period, usually a week or month. It allows you to plan your spending and saving compared to the money coming in (e.g. your pay).
You earn £2,400 a month. After rent, bills, food and travel, you decide to save £300 and leave £200 for leisure spending.
Why it matters
A budget helps you spot where your money is going before it becomes a problem, rather than wondering where it went at the end of the month.
A good budget doesn't stop you spending, it helps you spend intentionally on the things that matter most to you.
Do I need to track every penny?
No. Many people succeed with broad spending categories rather than recording every individual purchase.