ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Financial planning involves a thorough evaluation of one’s money situation (income, spending, debt, and saving) and expectations for the future. It can be created independently or with the help of a certified financial planner.

Detailed explanation-3: -Budget. A plan that outlines what money you expect to earn or receive (your income) and how you will save it or spend it (your expenses) for a given period of time; also called a spending plan.

Detailed explanation-4: -Record your income. Add up your expenses. Set your spending limit. Set your savings goal. Adjust your budget. Make budgeting easier. Up next in Budgeting.