In my last blog, I mentioned our binge-restrict cycle with money (if you missed it, you can read it here).
Back then, we tried different methods of budgeting—envelopes, spreadsheets, multiple bank accounts. Most of these worked for a little while, but we struggled to find a system and process that worked well for us long term.
Far too often, our “budget” was really just a list of bills with due dates and amounts owed. Can you relate?
Today, I don’t really like the word “budget.” I’ve found it has such a negative connotation to many people. I prefer the term “spending plan” over “budget.”
So, what is a spending plan? Let’s start with what it isn’t:
- It’s not a list of only bills (with due dates and amounts owed).
- It’s not a spreadsheet that you make at the beginning of the month and never look at again until the end when you’re wondering where all your money went.
- It’s not a restrictive device to control you.
So, what is a spending plan? A spending plan is a tool to help you be more intentional with your money. Your spending plan should be:
- Realistic: You spend your money on more than just your bills, right? It should reflect your real life income and expenses (restaurants, pet expenses, non-monthly expenses).
- Unique each month: No two months are the same. If you take a “set it and forget it” approach to your spending plan, you’re potentially also setting yourself up for failure. Each month might not need MAJOR tweaks, but it’s likely different than the one before and after.
- Flexible: There will be things that pop up during the month that you’ll need to cover. Know where you can adjust. Adding a “Miscellaneous” category is helpful.
The best part is you get to decide how you will use your money—all of it!
Love coffee shops? Plan for it.
Love traveling? Plan for it.
Love golf? Plan for it.
Want to give more to your church? Plan for it.
Want to save an emergency fund? Plan for it.
Want to pay extra on a debt? Plan for it.
You get the point. It’s your plan. Own it. Embrace it. Live it.
A spending plan helps you live the life you want to be living without the financial stress of added debt.
If followed, it will take the chaos out of your finances (and life)!
With a spending plan, you have the power to transform your financial future. This isn’t about restriction—it’s about intention.
Imagine a life where your finances support your passions, whether it’s sipping your favorite coffee, exploring new destinations, or playing a round of golf.
Picture the peace of mind that comes with knowing you’re prepared for whatever life throws your way, without the shadow of debt looming over you.
You don’t have to do it alone. I don’t believe in cookie-cutter plans in my coaching. Every client’s financial situation is unique, and I’m here to help you craft a plan tailored specifically to your needs and goals. Together, we’ll design a strategy that supports your values and turns financial chaos into clarity.
You have the reins. Let’s work together to own it, embrace it, and live it.
P.S. Imagine feeling more confident and in control of your finances in less than 90 days. With my guidance, you can achieve this! If you’re ready to work on your finances, I’m here to help. You can schedule a complimentary call HERE.
