Planned Spending

Published Jan 10, 2023

Definition of Planned Spending

Planned spending is the amount of money that an individual or organization plans to spend on goods and services in a given period of time. That means it is the amount of money that is budgeted for a certain purpose. It is usually calculated by taking into account the expected income and expenses for a certain period of time.

Example

To illustrate this, let’s look at a small business. The owner of the business has to decide how much money he wants to spend on advertising in the upcoming month. To do this, he looks at his expected income and expenses for the month and then calculates how much money he can afford to spend on advertising. This amount is his planned spending for the month.

Why Planned Spending Matters

Planned spending is an important concept for individuals and organizations alike. It helps them to stay within their budget and make sure that they are not overspending. It also helps them to plan ahead and make sure that they have enough money to cover their expenses.

Furthermore, it is also a useful tool for financial planning and forecasting. By calculating their planned spending, individuals and organizations can make sure that they are not spending more than they can afford and that they are making the most of their money.