You want to control your financial future… but sometimes money can feel overwhelming and daunting. Try not to make the mistake of letting your money control you. Get in the driver’s seat and take control of your finances by creating a spending plan.
What exactly is this spending plan thing? A spending plan is simply a budget. It is a tool that helps you track your income and expenses to ensure your money is going where you want and need it to go. So why do you call it a spending plan and not a budget? Think about this - you are at the doctor and he tells you to go on a diet… what thoughts come to your mind? Not being able to eat the foods you want, starvation, chocolate, ice cream….you think of everything you CAN’T have while on a diet, right? But what about all of the great foods that you can have while on a diet? What if your doctor told you to start a “weight management plan” instead? Weight management plan sounds easier and more fun than a diet, right? The same concept applies to budget versus spending plan. Developing a spending plan sounds more fun and less limiting than creating a budget, because a spending plan lets you set goals and recognize what changes you want to make in your spending habits.
So how can a spending plan help me take control of my finances? Let me ask you this - what if you decided to go on a road trip. But, you didn’t know where you wanted to go and you didn’t bring a map or a GPS. You just drove and drove and drove… where would you end up? Your guess is as good as mine. It is the same with your finances. How can you take control of your financial future if you have no idea where you want to go with it? A spending plan allows you to determine exactly where your money will go. We could go into all sorts of technicalities to explain the importance of a spending plan, but just know this: a spending plan will help you avoid unnecessary spending and instead, spend money on the things that are most important to you. A spending plan isn’t a torture device meant to deprive you of your favorite things. A spending plan will help you see all of your options and make smart choices so you can buy what you really want. It will help you find more money for the important things- often just by skipping little purchases you don’t care that much about. A spending plan will help you reach your personal goals and take control of your finances.
Diet is to budget as weight management plan is to spending plan
Get in the driver’s seat and take control of your financial future by using a spending plan
We asked you where you spend most of your money and the results are in!
Are you surprised that shopping is the largest category? Read above about how you can track your spending to ensure your hard-earned money is going where you want it to go. Learn more by reading "My Personal Spending Plan (Yes, We're Talking to You!)".