Budgeting

Budgeting in personal finance is the process of creating a plan for how to spend and save your money. It involves tracking your income (money coming in) and expenses (money going out), allowing you to allocate funds for essentials like housing, food, and transportation, while also setting aside savings for future goals or emergencies. A budget helps you understand your financial situation, avoid overspending, and make informed decisions about your money. By following a budget, you can work towards achieving your financial goals more effectively and improve your overall financial health.