What is the primary goal of budgeting?

The primary goal of budgeting is to ensure that spending does not exceed income. This foundation of personal finance involves creating a plan that outlines how much money you earn, what your necessary expenses are, and how much you can allocate towards savings and discretionary spending. By establishing a budget, individuals gain control over their financial situation, which helps prevent overspending and encourages responsible money management. It enables one to track how money flows in and out, ensuring financial stability and allowing individuals to make informed decisions regarding their finances. This fundamental practice can reduce financial stress and promote a healthier relationship with money, aligning with long-term financial goals.