The big idea
🧾
Spend less than you earn
A budget is simply a plan for your money — matching what comes in against what goes out.
Finance · Lesson 3
Income, Expenses, and Budgeting
beginner⏱ 13 min · 7 cards
A simple rule
One popular split
50% needs, 30% wants, 20% saving — a starting point, not a law.
Where money goes
Three buckets
Tap each.
Nuance
Common misconception
Watch out
Budgeting is not restriction — it is telling your money where to go.
Recap
Key takeaways
- ✓Net income, not gross, is the number to plan against.
- ✓Fixed expenses resist change; variable expenses flex quickly.
- ✓High fixed costs reduce your room to manoeuvre when income falls.
- ✓Saving must be an allocation, not a leftover.
- ✓A budget only works if planned and actual are compared and adjusted.
Quick check
Which best describes what finance is about?
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