A personal budget is a financial plan that outlines an individual’s expected income and expenses over a specific period of time, usually a month or a year. It is a tool that helps individuals manage their money by tracking their income and expenses and making informed decisions about their spending and saving habits.

A personal budget typically includes categories such as housing, transportation, food, entertainment, debt repayment, savings, and investments. The goal of a personal budget is to balance income and expenses so that individuals can achieve their financial goals, such as paying off debt, saving for a down payment on a home, or building an emergency fund.

To create a personal budget, individuals typically start by identifying their sources of income and estimating their expenses. They then allocate their income to various expense categories and adjust their spending as needed to stay within their budget.

A personal budget can be created using a spreadsheet, budgeting software, or pen and paper. It is an essential tool for anyone who wants to improve their financial well-being and achieve their financial goals.