A monthly budget is a financial plan that outlines expected income and expenses for a specific month. It helps individuals or households track their spending, ensuring they do not exceed their income. By categorizing expenses, such as housing, food, and transportation, a budget provides a clear picture of where money is going. Creating a monthly budget involves listing all sources of income and estimating costs for each category. This process allows for better financial decision-making and can help identify areas where savings can be made. Regularly reviewing the budget can lead to improved financial health and goal achievement.