Money Basics

Budgeting

A budget is a plan for how income will be used across spending, saving and debt repayment.

4 min

Money 101 • 03

A budget is a plan, not a punishment.

It gives your income jobs before the money disappears into dozens of small decisions.

The basic job is simple.

Estimate income, list expenses, include saving and debt goals, then compare the plan with what actually happens.

A useful budget includes more than monthly bills.

01Regular expenses02Irregular expenses03Savings goals04Debt payments05Room for wants and flexibility

A budget and a spending log are different.

01

Budget

What you intend to do with money.

02

Spending log

What actually happened.

A budget can divide one paycheque into jobs.

Monthly income$4,000
Needs$2,500
Goals$700
Flexible spending$800

The percentages are not universal rules.

Your housing, family, city, debt and goals can make a sensible budget look very different from someone else’s.

A budget gets better through adjustment.

01Estimate first02Track what actually happened03Fix categories that were unrealistic04Repeat next month

Remember this

A budget is a decision tool.

Its purpose is to make trade-offs visible before they become surprises.

Lesson complete

Reviewed 2026-08-18

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