Personal budgeting is the process of creating a financial plan to track and manage your income, expenses, and savings over a specific period. It serves as a roadmap to help you control your finances, avoid debt, and work toward your financial goals, such as buying a home, saving for retirement, or building an emergency fund. 

Key components of personal budgeting: 

• Income: This includes all sources of money you receive, like your salary, freelance earnings, or investment income.
• Fixed expenses: These are regular costs that stay consistent each month, such as rent, mortgage payments, or car payments.
• Variable expenses: These are costs that fluctuate from month to month, like groceries, utilities, or entertainment.
• Savings: A portion of your income is allocated to savings for emergencies and long-term goals.
• Debt repayment: Funds are set aside to pay off outstanding debts, such as credit card balances or student loans.