It’s kind of mind-boggling to think of your income in terms of how much money there is floating around in the United States in various forms, from coins and paper money to all of that other money on the books in financial institutions (that’s the money supply) and how it all moves from place to place (which is the economy), but you really should. They have a direct impact on how much you save and spend and therefore your budget. There are three things you need to know:

1. How the Fed impacts your money.
2. How the economy affects your budget.
3. How your budget protects you from changes in both.