You can think of a budget in one of 2 simple ways. You can think of a budget simply as permission to spend money. Without a budget, you haven’t given yourself, or anyone else permission to spend your money. When you have a budget, you have a spending plan. You plan what you spend, and only spend what you plan. Another way to think about a budget is as a navigation system. If your business is a car and a given income number is the goal, a budget will show you how to get there and will help you avoid road blocks and traffic collisions along the way.