What is a budget actually for?
Explain it like I'm 16
A budget is a plan for the money coming in and going out. It helps you see whether your spending fits your income and priorities.
A real-world example
In an illustrative monthly budget, £1,800 income minus £1,250 essentials and £350 other spending leaves £200 to allocate. If an annual bill is missing, that apparent spare money may already have a future job.
Example 1 of 1
Common misunderstanding
A budget is not simply a spending ban. It is a way to choose what you can afford and spot gaps early.
What next?
Keep going — pick your next step and we'll take it from here.