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A budget is a plan for how you will spend and save your money over a certain period, usually a month.
In Depth
It helps you track your income and expenses to ensure you don't spend more than you earn. By creating a budget, you can identify areas where you might be overspending and make adjustments to reach your financial goals, like saving for a down payment or paying off debt. It's a crucial tool for managing your money effectively and achieving financial stability.
Example
Creating a monthly budget helped Sarah realize she was spending too much on dining out, allowing her to reallocate that money towards her savings goal.