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What is budgeting?

A budget is a spending plan for your money. It highlights funding shortfalls, keeps you out of debt, and most importantly helps to make sure you have enough money to pay essential bills and living costs – and maybe save a little for the future too!

Your budget measures your projected income, money coming into your account, against your planned expenditure, money going out of your account.

Successful budgeting ensures there is money left over at the end of each week, month and year. Extra money in your budget reduces the likelihood of running out of money to pay for unforeseen costs, for example a replacement phone screen, dental treatment, or an emergency trip home.