BUDGET is simply a plan on how to spend your money. It's a way to balance the money you have with the money you spend.
You create a plan by making choices. You decide on what you will spend the money on, how much money you want to spend, and how much money you want to save.
Your plan is based on your income and expenses. Since every person's income and expenses vary, your plan needs to fit your situation. Your budget is based on your goals, needs and wants.
Let's take a look at some examples:
|Own a Car||Food||Fine dining|
|Own a Home||Shelter||Resort-like bungalow|
|Get Married||Clothing||Expensive branded clothes|
|Set up a business||Quality time with family||Expensive vacations|
|Provide good education to children||Car/ Motorcycle||Luxury car|
|Retire comfortably||Mobile phone||Latest full-featured phone|
|Contribute to charity||Computer||Most advanced computer |
Etc, etc, etc...