ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A budget is simply a spending plan that takes into account estimated current and future income and expenses for a specified future time period, usually a year. Having a budget keeps your spending in check and makes sure that your savings are on track for the future.

Detailed explanation-2: -Cash flow statement summarizes all of the income and outgo (spending) over a certain time period, A budget is a written plan for saving, giving and spending. The cash flow statement is reflective of what has already taken place, and a budget is a proactive plan of what will take place.

Detailed explanation-3: -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-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: -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.