Spending

Meaning :

Spending refers to the act of using money to purchase goods, services, or to meet various needs and wants. It represents the outflow of money for essential items or

lifestyle choices.

Example : 

For example, spending ₹1,500 on groceries or ₹300 on a mobile recharge  illustrates the concept of spending.

How to Understand : 

Think of spending as the process of money leaving your pocket when you make  purchases.

Recognizing the difference between needs (essential items) and wants (optional items) helps you manage your spending effectively.

Balanced spending is important to ensure you don’t run out of money too quickly.

Importance :

Spending is essential for fulfilling daily needs and living requirements, such as food and utilities.

It has a direct impact on your savings and overall financial stability.

Spending encourages you to budget and develop money discipline for better financial management.

It plays a significant role in your long-term financial planning by influencing how much you can save.

Spending helps you maintain a balanced lifestyle, allowing you to enjoy life while being financially responsible.