Creating a spending plan does not have to be stressful or painful. It can be an opportunity to be in control of your money and tell it where you want it to go.
How would you feel if two or three years from now you were debt-free, living in your dream home, and planning your next vacation? All because you started planning to spend your money by creating a spending plan.
You are the master of your spending plan, and if your spending plan isn’t working for you, trash it and try again. You can also work with a coach to reduce the stress and gain confidence that your money is working for you.
However, if you’re among the half of Americans who don’t use a spending plan, I am not sure this is for you, but below are some reasons to create a winning spending plan for you and your family.
A Spending Plan Sets Limits for your Spending. A spending planhelps individuals and families live within their means. The goal of a spending plan is to help people live within their means. A spending plan sets category spending limits and overall spending during a period. The limits are based on when you receive income. Individuals who follow a spending plan are better equipped to avoid overspending.
Remember that a spending plan is just an estimate of how you are going to spend your money. To be successful, you need to track your spending and be prepared to adjust. A flexible spending plan is easier to follow.
A Spending Plan Helps You Live Within Your Means. A spending plan helps you with the discipline to live within your means. A spending plan goes beyond debits and credits and helps create alignment between you and your money. It also helps set financial goals and attach numbers to your goals, so you can move forward with accomplishing them.
A Spending Plan Helps You Separate Needs from Wants and Save Money. To create a winning spending plan, you must separate needs from the wants. Consider what is needed every day and what is wanted and create your plan accordingly. Also, a good spending plan will allow you to save some money each period.
Spending plan or no Spending plan, I believe that we all want to live our best lives and that includes in the financial area. Having an awareness of how much you bring home and where your money is going, a spending plan, you will be on your way to a better financial future. Contact me if I can help you create a winning spending plan. Be encouraged.