Personal budget

[2] Personal budgets are usually created to help an individual or a household of people to control their spending and achieve their financial goals.

[3] People who budget their money are less likely to amass large debts, are more likely to lead comfortable lives in retirement, and are better prepared for emergencies.

In the most basic form of creating a personal budget the person needs to calculate their net income, track their spending over a set period of time, set goals based on the information previously gathered, make a plan to achieve these goals, and adjust their spending based on the plan.

The 50/30/20 budget is a simple plan that sorts personal expenses into three categories: "needs" (basic necessities), "wants", and savings.

[citation needed] Several personal finance softwares and mobile apps have been developed to help people with managing their money.