You need to buy new clothes, but you also want to buy a new phone. How do you choose?
To make good decisions about how to spend your money, start by setting your money goals and work toward achieving them with a plan in mind. A personal budget is a plan that helps you put the money you’ve earned toward savings, expenses (lunch, bus or entertainment money) or paying off debt (money you may have borrowed).
When you’re creating a budget, it is important to understand the difference between something you need to have and something you want to have.