How can you use a budget to track your expenses?

A budget helps you track your expenses by setting specific limits for different spending categories, such as housing, food, and entertainment. By regularly recording your actual expenditures against these budgeted amounts, you can easily identify areas where you may be overspending or underspending. This process allows you to make informed adjustments to your spending habits, ensuring that you stay within your financial goals. Additionally, reviewing your budget regularly can help you plan for future expenses and savings more effectively.