Spending

Spending involves using your money to purchase goods or services. It is a fundamental aspect of personal finance and can include essential expenses like housing, food, and transportation, as well as discretionary spending on entertainment, travel, or luxury items. Tracking spending is an important part of financial management, as uncontrolled spending can lead to debt and limit one’s ability to save or invest. Creating a balanced spending plan ensures that essential needs are met while allowing room for savings and leisure.