Final answer:
When setting a budget, you need to consider your financial goals, needs and wants, and savings.
Step-by-step explanation:
When setting a budget, you should consider your financial goals, your needs and wants, and your savings. These are all important factors to take into account because they will affect how you allocate your income and prioritize your spending.
Your financial goals are what you hope to achieve with your money, such as saving for a house or paying off debt. Needs are essential expenses like rent or groceries, while wants are things you desire but are not necessary. Savings should be included in your budget to build an emergency fund and invest for the future.
By considering all of these factors, you can create a realistic and balanced budget that aligns with your financial priorities.