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  2. Budgeting is the process of creating a financial plan that estimates your income and expenses over a specific period, usually a month or a year. It’s a way to track your spending, save for the future, and make sure you’re living within your means.
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    How do I make a budget?Now it's time to make your budget. This step will depend on your approach. If you're using a zero-based budget, then you'll divide all of your money into specific categories of spending. If you're using a 50/30/20 budget, then you'll group all your fixed expenses under the 50% category.
    Why do you need a budget?"For instance, a budget can reveal that you're overspending on certain monthly bills and offer savings in other areas without causing much sacrifice," Woroch said in an email. Uncovering those savings can allow you to spend more on things you thought you couldn't afford, she said.
    Do you need a budget?A budget is often the ticket to taking control of your personal finances and making sure you can accomplish your financial goals. But despite the importance of having a budget, many people aren't sure where to start when it comes to creating one.
    Is budgeting a good idea?"Think of budgeting as a gateway to building wealth and establishing long-term financial stability. Saving allows you to make progress toward short- and long-term goals, whether it’s buying a home or retiring," Mary Hines Droesch, the head of consumer and small business products at Bank of America, said in an email.
     
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