Budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you.
The 50%/30%/20% budgeting rule is spending 50% on needs and 30% on wants while allocating 20% to savings.
An emergency saving is a bank account with money set aside to cover large, unexpected expenses. Such as financial crisis, job loss, travel expenses or large medical bills. These unexpected events can be stressful and costly.