A spending plan is a guesstimate of what you will spend over a period of time. It is not a hope, a dream, or any sort of limit that you place on what you spend. It is merely a personal projection of where the money you spend will go and how much. Before you can go making any projections, you need a starting point. The best way to do this, typically, is to review how you’ve spent in the past. Ultimately, a spending plan is a significant part of shifting focus and finding the intention you need in your own finances.
In this episode of Deliberate Money Moves, I’ll review how a spending plan fits into your overall financial landscape. We will discuss the best way to build it for you, and some of the drawbacks we have when it comes to sitting down and sifting through our spending patterns. Finally, I highlight how developing your spending plan can be vital in helping eliminate your financial anxiety because your financial life doesn’t have to be difficult or a struggle.
Highlights From Episode #05:
- Spending must help you be successful throughout your life.
- Spending must fit with your goals and values.
- Spending must bring joy.
Time-stamped Show Notes:
0:45 – What is a spending plan?
2:19 – How does a spending plan give you confidence?
2:38 – What are the three pieces of a spending plan?
4:13 – Why don’t we want to review our spending?
4:28 – For couples, it is key to do this exercise together, here’s why
4:57 – How does having a spending plan push anxiety out the door?
Resources/Tools/Links Mentioned In This Episode:
How to Get a Handle on Your Net Cash Flow