The goal of a budget is to minimize expenses and maximize savings. It can help you identify wasteful expenditures, adapt quickly as your financial situation changes and achieve your financial goals. By cutting down on unnecessary spending and increasing your monthly savings, you can put extra money toward important long-term financial goals. Buying a car, purchasing a home, or taking out a loan requires you to know if you can afford the payments each month. By working on your budgeting skills now, you will know exactly what you can afford in the future.