I love the game of chess. It’s an interesting and intriguing game in that you use the same pieces, but every game is different. I also like that; It’s a game of strategy and planning. That is because I believe a good strategy, or plan of attack, can do almost anything. It can even help your spending plan.
According to Peter Drucker, a management consultant, author, educator, and the described founder of modern management, one thing that beats strategy is culture. Actually, Drucker said, ‘Culture eats strategy for breakfast.” A good spending plan strategy, how you plan your spending or how you work your money, can be affected by your culture.
Culture is defined as a shared understanding that emerges from shared experience. Its customs, social institutions, and achievements of a particular people group. I could go in so many directions here as research has shown that, for example, people get their financial advice from family and friends most often. And these are the people who most often are our culture and help make your culture. Just know that culture plays a significant role in how we manage our money. It’s not right or wrong it’s just a factor.
Budgeting Strategy
One of my budgeting strategies is to consistently work with my spending plan so that I stick to it. Another strategy could you could use might be the 50 30 20 strategy made popular by Senator Elizabeth Warren where 50% of income is spent on needs, 30% is spent on wants, and savings makes up the last 20%.
Creating a spending plan that works, is a process and what I mentioned above should be done to help you in the process of making a winning spending plan. Your strategy is how you go about the process.
Culture Trumps Strategy
Sometimes we can come to a place, for example, where we do not track our spending and do not stick to the spending plan and become so good at not doing what we know we need to do to manage our money better. We actually prevent ourselves from moving forward with our money. According to the Harvard Business Review, culture is the habits that allow for cooperation by assumption rather than by negotiation. Culture is not what we say but what we do. Culture is based on values. It is what we value that creates our culture.
When we do not Follow Through on Our Budgeting or Spending Plan Strategy
For whatever reason, when we don’t budget or track spending or do not follow up on the spending plan, you are allowing it to beat you. Creating a spending plan that works for you and your family is a process. Your strategy is how you go about the process. How you tackle those things that need to be done to make your spending plan successful in your household.
Do you have a Budgeting Strategy?
Suppose you are spending your money with a plan and tracking your spending and following through on your budget, great. If not, the great thing about budgeting is that you can start today doing those things that will help you win with money. And if you do not have a spending plan create one today.
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