Budgets - explained

Budgets are basically a plan of spend, the aim is to set yourself targets for spending money.  People usually set budgets for the following reasons:

1) helping them to stay within set limits so that outgoing do not exceed income, thereby reducing not ensuring you are "living within your means"

2) to maximise the amount a person saves

3) to help save up for a big purchase eg a car

Budgets are usually set beforehand and actual outgoings monitored against this regularly to ensure you are on plan.  It is definitely a good way to manage and control your finances.

I hope this tip is useful, if you have any queries please leave a comment.