Budget
A budget is a plan for your money: what comes in, what has to go out, and what's left to save or spend. It's the first step because every other money decision depends on knowing those numbers.
🌍 In the real world
Start with income after tax, then list what you must pay: housing, food, utilities, the costs of earning an income (like getting to work), health care and at least the minimum payment on every debt. What's left is what you can direct toward saving, paying debt down faster and spending you choose.
Common methods include the 50/30/20 rule (half on needs, 30% on wants, 20% on saving and debt), zero-based budgeting, where every dollar is assigned a job, and the envelope system, where cash for each category goes in its own envelope. The best method is one you'll actually keep up.
Formula
Left over = income after tax − essential costs − minimum debt payments
Example
Take-home pay of $3,200 a month, with $2,500 of essentials and minimum payments, leaves $700 a month to build savings and pay debt down.
🎮 In Journey Shares
Your portfolio page is your budget: cash, savings, stocks, debts and the tax you owe this week, all in one place. Step 0 of the money plan on the bank page asks you to keep enough cash to cover this week's tax. →
🧭 How to use it
Open your portfolio before trading and check two numbers: the tax you owe this week and your cash. If the tax is bigger than your cash, you're spending money that's already spoken for.
Follow the money plan on the bank page in order. It's the game's version of a real budget: bills first, then a cushion, then investing.
🎮 Learn Budget the fun way
Try it in a live 3D city with play money: trade shares in real public figures, get margin-called, pay your taxes and rob a bot or two. Free, and nothing real is at stake.
❓ Common questions
What's the 50/30/20 rule?
A simple budget that splits take-home pay into 50% for needs, 30% for wants and 20% for saving and paying debt down. It's a starting point, not a rule everyone can follow.
Should I budget if my income changes every month?
It helps even more. A common approach is to budget from your lowest recent month and treat anything above it as extra for savings or debt.
📜 Where it came from
🧩 Quick check
Which term is this?
“____ is everything you own minus everything you owe.”
🔗 Related terms
- Emergency fund: An emergency fund is cash set aside for surprises, like a job loss, a car repair or a medical bill, so you don't have to borrow or sell investments at a bad time.
- Sinking fund: A sinking fund is money you set aside bit by bit for a large expense you know is coming, like a car, a certification or a down payment, so it doesn't land on a credit card.
- Net worth: Net worth is everything you own minus everything you owe.
- Opportunity cost: Opportunity cost is the value of the best alternative you give up when you make a choice.
Categories: Personal finance
Practise with $10,000 in play money
Free. No real money involved.