So you think you need a budget? Why that usually doesn’t work…
You know that knowing where your money goes is a good idea and you also know that overspending can lead to all kinds of financial stress (hello Christmas!). But every time you start to budget you feel your stomach start to turn and the ick start to emerge. You’re not alone in feeling like this, for most people budgeting is negative and really doesn’t work.
When you’re ready to be intentional about knowing where your money goes, it’s time to ditch the budget, change perspectives, and adopt a spending plan! What is a spending plan? It’s a plan for distributing your income amongst the stuff you need and the stuff you want.
Here’s why you should choose a spending plan:
Intentionality –
A spending plan empowers you to choose how you’re going to spend your hard-earned money and how it will support the life you want to live.
Prioritization –
Not all needs and wants are created equal. A spending plan helps you figure out which wants come first, after all of your needs have been met.
Transparency –
It’s not always easy, but you should expect that you’ll have to allocate money towards things that aren’t that fun. For example, taxes. If you plan ahead, you won’t be surprised when the bill comes due.
Accountability –
Just creating the spending plan isn’t quite enough. Check-in at least weekly with your spending plan to make sure you’re meeting all your goals.
Psychology –
Most importantly of all, creating a system that works for you is the most important thing. Just by changing your perspective into a spending plan (empowering) and away from a budget (looking back with shame and judgement) you’ll find yourself more motivated and excited to create the life you want to live.
If you’d like to discuss how we can help you define your intrinsic motivations and reach your next levels of success, check out our webpage or reach out to chat. We’d love to hear from you.