Budgeting

Budgeting – A plan to decide how to save, spend, and invest money during a given period of time

Let’s say you receive a $10 weekly allowance and want to buy a $50 video game. Before budgeting effectively, you'll need to decide how long you want to wait (time horizon) before buying the game and how much of a priority it is for you.

Source: Amazon/Nintendo

Having a well-thought out budget provides financial clarity, prevents overspending, and helps you achieve your long-term financial goals.