Back to glossary

Budget

A plan for how you allocate income to spending, saving, and debt payoff each month.

Why it matters

A budget aligns money to intent. Popular frameworks include 50/30/20 (50% needs, 30% wants, 20% savings/debt) and zero-based (every dollar assigned). The right budget is whichever one you actually maintain.

See also

Educational only — not financial, tax, or legal advice.