The primary purpose of a budget is to manage and allocate financial resources effectively. It serves as a tool for planning income and expenditures over a specific period, helping individuals and organizations to set financial goals and monitor performance against those targets. By establishing a budget, one can track spending habits, prioritize needs versus wants, and ensure sufficient funds are available for essential expenses or savings. Adhering to a budget also helps identify areas where overspending may occur, facilitating better financial decision-making and promoting long-term financial health.