Planning of Expenditure
Although earning is important for financial planning, yet how to spend that earning is more important. Your thought and style of spending helps you to be rich, middle class or poor. People earn more money to spend. On the basis of nature and habits of spending, we can classify people into two categories. First type of people spend more than their earnings. Due to these habits they always carry weight of debt on their life. There are some other type of people also, who earn less money than that of first kind of people, but they plan their expenses more wisely, and save some money after their expenditure. The difference between two types of people are basically their nature and thought about spending.
Spending plan helps people in following types:
* It Prevents people from unnecessry spending.
* It encourage people to earn more money according to their expenditure need
* It save from debts and helps to live within income
* It is helpful to saving and investment