What is goal-based budgeting?
Goal-based budgeting is the practice of having a goal in mind for the entire basis of your budget. Doing so will give you a much better chance of achieving it on schedule. For many people, this goal debt freedom. For others, it might be saving for a house or for the ability to make a career change. Whatever it is, having a big long term goal in mind, particularly something that would have a big impact on your life, is useful when planning a budget.