What is a budget and why is it important?

A budget is a plan that helps you manage your finances by allocating your income towards expenses, savings, and debt payments. It is important because it allows you to take control of your finances and make informed decisions about your spending. Budgeting helps you identify areas where you can save money, prioritize your expenses, and plan for the future. With a budget in place, you can avoid overspending, reduce debt, build savings, and work towards achieving your financial goals.