ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A spending plan is a plan for spending and saving money. In other words, a comparison of what you earn (income) and where the money goes (savings and household expenses).

Detailed explanation-2: -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-3: -A budget is a plan you write down to decide how you will spend your money each month. A budget helps you make sure you will have enough money every month.

Detailed explanation-4: -What is a Budget? Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

Detailed explanation-5: -A spending plan (a.k.a., budget) is a plan for spending and saving money in the future. In other words, a projection of what you will earn (income) and where the money will go (savings and household expenses). A spending plan provides direction for future spending so there is enough income to pay expenses.