Budgeting is the process of creating a plan to spend your money. This spending plan, or budget, helps you decide how much you will save and how much you will spend each month on necessary items like housing, food, and bills. Creating a budget also helps you choose where to spend what’s left over after your essential bills and expenses are taken care of. Ultimately, budgeting allows you to make informed decisions about how you want to allocate your financial resources, ensuring that you can meet your current and future needs.