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Budget
A plan you make in advance for what your money will do, before any of it gets spent.
Example
You get $40 of allowance each month. Your budget says $20 to spend, $15 to save, $5 for a friend's birthday gift fund. Now when the next bubble tea trip comes up, the answer is already decided, instead of being a wrestling match each time.
How it fits in
A budget is not a punishment. It is a decision made in advance, when you are calm, about how income gets shared between today, tomorrow, and the long run. Most working budgets allocate income across spending, saving, and investing in roughly fixed proportions and review the ratios monthly. The plan beats willpower in the moment.
Where this is taught
Practise it on the platform
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.