I know what you’re thinking: “Spending plan? Isn’t that just a fancy word for budgeting?” Well, sort of, but hear me out! The word “budget” tends to make people feel trapped or deprived like they’re in some endless game of financial limbo. That’s why I prefer to call it a Spending Plan. In reality, it’s not about cutting out everything you love; it’s about directing your money toward the things that matter most to you!
Mindset Shift: From “Budget” to “Spending Plan”
Think of a spending plan as your new BFF (Best Financial Friend)! It’s not just a bunch of rules—it’s your guide to living the life you want. For example, a spending plan helps you know where your money is going so you can ensure it’s heading toward your goals (like that dream vacation or starting your own business). With a spending plan, you are giving your money an assignment, a job to perform.
Breaking It Down
By all means, let’s reframe the way we think about managing money. Instead of feeling restricted by a “budget,” imagine having a “spending plan” that guides you toward your dreams!
Key Points:
- Step 1: Name Your Priorities. What are the top 3 things that make you happy? Your spending plan should reflect these!
- Step 2: Spot the Leaks. Look at where your money is sneaking off to—subscriptions you forgot about, little treats that don’t bring joy, etc.
- Step 3: Make it a Fun Challenge. Turn saving into a game. How much can you save this month by finding creative ways to cut back, or eliminating those sneaky subscriptions?
- Celebrate Wins: Small wins add up! Did you save $5 today? Awesome! Reward yourself with a little celebration (yes, even a happy dance counts).
In order to keep myself in check, I did my own review this past month. I looked at all of those small, incidental things I’ve signed up for and no longer use. Some I had forgotten all about. As a result, I found $87 in monthly costs. And poof, now they are gone!
Get Started
Ready to create your own spending plan? Grab your favorite notebook and let’s make it happen! I’ll be here every step of the way to cheer you on!