What is a Budget?

A budget is simply an organized way of managing your money. It can be as simple or as complicated as you wish. A budget gives you an overall picture of where your money is coming from, when it's coming in and how it's being spent. Above all, a budget should be flexible, changing according to your situation.

We all work hard for our money, so we want to get the most from it. Budgeting helps us afford our short-term goals like buying clothes, going to the movies, or taking a friend to that trendy new restaurant.

It's also for longer-term financial goals like buying a home, a car, paying for an education, a wedding, or a holiday. When you take control of your financial affairs, you're more confident about the future.

Should I be budgeting?

Of course you should be. A budget is key to financial control. It gives you a "snapshot" of where you stand financially and where you're headed.

A budget makes you realize the importance of saving and how challenging it can be sometimes to achieve your own personal goals. You have to start somewhere, so budget to buy that new mountain bike or pair of roller blades.