When you budget you are able to have enough funds for your basic needs and make informed decisions about our discretionary spending. It also helps us manage our debts because by doing so we can allocate funds towards paying off our debts and reducing interest charges. So it also reduces financial stresses whereby you can be in more control of your finances and reduce finance stress because it provides a clear picture of our financial situations. I'm going to give our 20 30 50 budget rule as an example