Most people are just not motivated by creating or using a spending plan. Research has shown that 20 – 30 percent of the U.S. population does not use a spending plan. According to a Debt.com survey of over 1000 people, almost a third did not use a spending plan because they felt they did not have enough income. They may have felt like they did not have enough income to use a spending plan, but it’s a good practice to use one anyway, and the spending plan tools below can help you create and manage your spending plan.

What are Spending Plan Tools?

A spending plan tool is simply anything that helps you manage your spending plan. They help you stick to your spending plan and accomplish your goals. Sticking to your spending plan is increasingly important given today’s economic situation.

Additionally, having the right tools is essential when tracking expenses and monitoring income. Luckily, you don’t have to break the bank by buying expensive software or anything like that. From old-school methods to the latest financial applications, there are many tools out there. Below are a few of my favorites.

One of the Oldest is the Envelope System

In the envelope system, you develop your spending plan, cash your check, and distribute your paycheck funds or the funds you created the spending plan for into different envelopes. Next, label envelopes with all your spending categories and put the money into the envelopes. Then you spend the money out of the envelopes for your different spending categories. This method is really good for sticking to your spending plan because when a category or an envelope is empty – it’s empty and there is no more spending in that category unless you make some adjustments to another category.

Spending plans are living and breathing, they change, but an empty envelope is not necessarily a reason to change the spending plan. Perhaps you need to adjust a spending category and spend less in it so you can spend more in another. 

The Spending Plan Calendar as a Spending Plan Tool

This one is my favorites. I am in the process of creating my 2023 spending plan calendars. If you are interested in purchasing one, let me know.

The spending plan calendar is a calendar you use to track your income and expenses by date. To use this tool, pick a day and time during the week. Once a week, and during that time, track your income and expenses in the calendar. The goal is to get into the habit of doing this. I call this working your money. 

Due dates go on the calendar and serve as weekly or monthly reminders to make payments and help to avoid being late. Sharing with your family ensures the family understands the financial priorities of the household. It will also help you feel more in control of your financial life.

Many times, when there are money problems, money going out is the problem, not the money coming in.

There are other tools such as spreadsheets and financial applications you can use to track income and expense categories. Use whatever works best for you. I suggest that you try one or two until you find one that works and helps you start reaching financial goals. 

Not everyone relishes the idea of proactively managing money and maintaining a spending plan. However, creating a spending plan and sticking to it are key steps toward reaching financial goals large and small. Spending plan tools can help you manage your money better.