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What happens if you spend all of your transfer budget?

For the less cash rich clubs.
Started on 25 November 2011 by Cardiff06
Latest Reply on 30 November 2011 by sarang27
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Throughout the last 3 or 4 FM's (whichever one coincides with West Ham's fall from financial grace) I have always been reluctant to spend my entire budget, due to the fact its generally more than the balance of the club. Occasionally when spent, the club has gone from "secure" finances to "insecure" so progress is always halted. Even though I'm offered a decent budget the next season, it looks as though finances could spiral out of control. However when at Barca you can go £40 mill into the red but remain rich?
well i think its to do with the incomes rather than current budget.
It confuses me slightly as it can still occur when running at pretty bad losses. That said, I do prefer to run a tight ship off the pitch.
i saw somewhere that you should always spend the entire transfer budget as otherwise it gets taken away (or at least not increased) next season.

with arsenal i have about 70m budget. if i spend it all i hopefully get 40-50m next season allowing me to spend 120m over 2 seasons. but if i only spend 20m of the 70m initially then i get a 50m budget the next (which is what i had anyway).

is this true?

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