What is a budget?

A budget is a plan detailing how you spend, based on how much money you have coming in and how much you need to pay out. This means looking at your income (the money you are receiving) and your outgoings (the money you are spending), and making sure you have more coming in than going out.

Source: Managing money @ The National Autistic Society

image: Spread of mixed notes by Bank of England under Creative Commons license