A budget is a spending plan that includes everything you will spend money on.

A budget is a spending plan that includes everything you will spend money on.  It is an outline of your future income and expenditures that you can use as a guideline for spending and saving. Understanding the basics of money management will allow you to live well today and build a strong financial future. A good budget is a spending plan that includes everything you will spend money on and stays within your income.  A wise budget includes everything you will spend money on, savings for a rainy day, savings for large purchases, and investment for retirement, and still stays within your income. 

Tips:

1. Get a true picture of your spending. See where your money is really going by keeping track of your income and expenses.
2. Get organized. Start taking control of your money by doing some financial housecleaning.  Cutting back is usually a better place to start than completely cutting out. Be realistic. It will help you to be better prepared for unexpected expenses.
3. Make Saving a Priority. You will be more likely to save money if you make it a priority. Sit down and figure out what you would like to save money for (retirement, a house, car, college, dream vacation) and how much it will cost. Treat your savings contribution just like any other must-pay expense, such as rent or groceries.
4. Pay Down Debt. If you have credit card debt, you may feel like it's going to take forever to pay it off. But you can get ahead by choosing one card -- ideally, the one with the highest interest rate -- and paying as much as you can on it every month. If you have other cards, pay the minimum balance on those until you've paid off the first card. Then, choose the next card and pay extra on it while you pay minimums on the others. If you pay only the minimums on all your cards, you'll be paying a lot more in interest than you may realize.
5. Analyze Your Spending. Look through your budget and all your receipts. Can you find an expense that can be cut? Maybe you could bring your lunch to work twice a week, or set up a carpool with a friend. Just c­utting out restaurant and gas costs can help increase the amount of money you have available for savings and purchases.