A personal or household budget is a financial summary that compares and tracks your income and expenses for a defined period, typically one month at a time. Essentially, it is a written plan for how you will spend your money. It allows you to make financial decisions ahead of time, making it easier to cover all your expenses. It also helps you pay off debt, save for the future, and be able to afford fun expenses. Budgeting consistently can help you turn your finances around and start the process of building wealth.