ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A personal spending plan, similar to one’s budget, helps outline where income is earned and where expenses are incurred.

Detailed explanation-2: -A “Spending Plan” is similar to a budget, but a bit easier to manage and follow.

Detailed explanation-3: -A budget plan is a chart that shows you the flow of money in your everyday life. A budget can help you determine where you are overspending as well as help you adjust bad spending habits. By making slight adjustments to your budget, you may have the ability to save more or make larger payments on your debts.

Detailed explanation-4: -What is a Spending Plan? 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-5: -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.