ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget.

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: -Try a simple budgeting plan. We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment. We like the simplicity of this plan.

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.