Budget, Income Statement, and Balance Sheet

A budget is a plan for how you will use your money in a month. A budget is like your game loadout or inventory. If you spend all your coins on cosmetics, you will not have enough for the tools that help you win. A budget is how you choose your loadout on purpose. The simple structure separates your spending into Needs (basics you must pay for), Wants (optional spending), and Savings (paying yourself first). For example, with a $500 income living with family: Pay yourself first savings is $50, Needs total $320 (family contribution $80, food $140, transport $50, phone data $15, school supplies $15, health $20), and Wants are $130 for snacks, entertainment, and outings. The check: $50 + $320 + $130 = $500. If wants becomes negative, you must change something: reduce needs if possible, reduce wants, lower savings temporarily, or find a way to increase income.