Budgeting

Budgeting involves creating a plan for spending and saving money, resulting in a written budget that helps manage finances effectively. It aids in setting spending limits, living within means, managing debts, and prioritizing important expenses. To create a budget, record total net income, track spending habits, identify financial goals, and develop a plan that adjusts variable expenses. Sticking to the budget requires self-control and regular reviews to ensure it aligns with financial goals and changing circumstances.