Basic personal budget planning helps people to plan and manage their finances. By creating a budget, people are able to identify their income and expenses, determine their net worth, and set financial goals. Budgeting also helps people to understand where their money is going and make adjustments to their spending habits. It also allows them to plan for future expenses, like saving for retirement or a down payment on a home. Lastly, budgeting helps people to stay on track with their financial goals and ensure they are making the most of their money.