net spend rule

The net spend rule is a budgeting principle used to measure how much money an individual or organization spends relative to their income or revenue. It involves calculating total expenditures (spend) and subtracting any income or savings (refunds, income, or refunds), resulting in a net figure. If the net spend is positive, it indicates spending exceeds income; if negative, it suggests spending is controlled or below income. The rule helps in managing finances by ensuring spending aligns with income, preventing overspending, and maintaining financial stability.