Personal Finance

Budget

Definition

What is Budget?

A plan for allocating income among spending, saving, debt repayment, and investing.

Example in practice

The monthly budget directs 15% of income to investments.

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Money set aside rather than spent, often for emergencies or future goals.

Liquid savings reserved for unexpected expenses or income disruption.

Total assets minus total liabilities.

Annual portfolio withdrawals divided by the portfolio's starting or current value.

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