A budget is an organization of your or your household’s income that lays out spending considerations for expenses, debt payment, and savings.
The main purpose of a budget is to save you from financial distress by ensuring that you do not overspend. It can also be used to proactively save up for a purchase or vacation or to pay off debt since it allows you to factor in these goals while also accounting for your everyday expenses. A budget is also a powerful way to bring yourself peace of mind.