What is a budget?

A budget is fundamentally a plan for how you will spend your money each month. It involves outlining your income, identifying necessary expenses like housing, food, transportation, and other financial obligations, and allocating funds accordingly to ensure that your financial resources are being used effectively. By creating a budget, individuals can gain better control over their finances, track their spending habits, and work towards financial goals, such as saving for emergencies or planning for future expenses.

The other options represent different financial concepts rather than a budget itself. While a plan for future investments relates to managing investment portfolios, it doesn't encompass the overall picture of monthly spending. A savings account management tool focuses specifically on managing savings rather than budgeting for expenses and income. Lastly, a document for reporting taxes refers to tax filings, which is a different process from actively managing monthly finances through a budget.