Budgeting is the process of creating a plan for how to spend your money. It helps you track your income and expenses, ensuring that you don’t spend more than you earn. By setting aside money for necessities like rent, groceries, and utilities, you can avoid financial stress 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 categorize your spending into areas like entertainment or savings, making it easier to identify where you can cut back. This way, you can make informed decisions and achieve your financial goals.