whats the purpose of a budget sheet?

Question

i know its a simple question, but its hard for me to comprehend. Please help, not chastise.

Answer 1

A budget is a tool to use to plan your spending. It gives you a bird's eye view of your money coming in (income) and your money going out (expenses). It shows you where and how much of your money is going. It shows you a spending trend so you'll know where you spend most of your money. It shows you areas where you could possibly cut spending so you could re-allocate that money to other bills or to savings. It shows you (in advance) the months that will require additional money to pay all of your bills (such as an annual insurance payment).

Hope this helps!