ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget is basically a financial plan for a defined period, usually a year. It greatly enhances the success of any undertaking. Budgeting helps saving funds easier as it tells you how much money must be set aside for each category of expenses and the remaining can be put into the savings bucket.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -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-5: -A budget plays a valuable role in determining how much of your income you need to save each month to reach those goals and how to allocate that money accordingly.