Budgeting is the process of creating and adapting to a budget. It involves planning and tracking income and expenses to ensure that spending stays within a predetermined financial limit.

Budgeting typically involves setting financial goals, identifying expenses, creating a spending plan, and monitoring spending habits. The goal of budgeting is to help individuals or organizations make informed financial decisions, prioritize spending, and save money for future needs.

Effective budgeting can also help individuals or organizations prepare for unexpected expenses, reduce debt, and achieve long-term financial stability.