Spending

Meaning :

Spending refers to using money to buy goods, services, or to fulfill needs and  wants. It is the outflow of money for essential items or lifestyle choices.

Example : 

For instance, paying ₹1,500 for groceries or ₹300 for mobile recharge is an  example of spending.

How to Understand : 

Spending is how money leaves your pocket when you buy things.

Understanding the difference between needs (things you must have) and wants (things  you would like to have) helps you manage your spending wisely.

Balanced spending ensures you don’t run out of money too quickly.

Importance :

Spending helps fulfill daily needs and living requirements, like food and shelter.

It influences your savings and overall financial stability.

Spending encourages budgeting and money discipline, helping you keep track of your finances.

It affects your long-term financial planning by determining how much you can save.

Spending helps maintain a balanced lifestyle by allowing you to enjoy life while  managing your finances.