Budgeting is the process of creating a plan to manage your money. It helps you track your income and expenses, ensuring you spend within your means. By setting aside funds for necessities like housing, food, and transportation, you can avoid overspending and save for future goals, such as a vacation or emergency fund. A good budget allows you to see where your money goes each month. You can adjust your spending habits by identifying areas where you might cut back, like dining out or subscription services. This way, budgeting empowers you to make informed financial decisions and achieve your financial dreams.