Definition

The fundamental steps of planning your income and expenses to manage your money effectively.

What to consider

  • Start with clear, realistic income and expense estimates.
  • Include every cost—both fixed and variable—in your plan.
  • Review and adjust your budget periodically as your needs change.

Real world scenarios

  • Learning budgeting basics in a community workshop helped Isabella organize her monthly expenses and start saving for a new car.

Related terms

Financial Coaching & Mindset