ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A spending plan (also called a budget) is simply a plan you create to help you meet expenses and spend money the way you want to spend it. A good spending plan can help you stop “spending leaks”; in other words, it can keep you from spending money without thinking.

Detailed explanation-2: -everyone needs a budget, no matter if they’re up to their eyeballs in debt or swimming in millions of dollars in cash. A budget is how you keep track of your money and make sure you’re in the driver’s seat of where it’s going. It helps you with all your financial goals-especially paying off debt.

Detailed explanation-3: -A spending plan is a method for distributing your income among the mix of things you want and need. Creating a spending plan ahead of time will allow you to effectively manage your finances and determine where to best spend your money.

Detailed explanation-4: -One common budgeting mistake is not having a budget at all. Remaining in the dark about your spending can limit your ability to save for important goals like a car, a home or your retirement. If you don’t know what you’re spending, there’s a reasonable chance you may be spending too much.