Basics

Budget

A budget is a plan for how you will spend and save your money. It tracks income and expenses to help you live within your means and reach financial goals. A good budget allocates money for needs, wants, and savings.

Example

The 50/30/20 budget allocates 50% to needs, 30% to wants, and 20% to savings.

Related Terms

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Budget — Definition & Example | Investors Lab | Investors Lab