A Spending and Savings Plan Lets You Ditch the “B” Word
I’m feeling nauseous talking about it. I probably shouldn’t even bring up this word because every time I hear it, I start to think about what I can’t have rather than what I can have.
The word is BUDGET. Ughh!! I’m getting all choked up.
Budgeting makes me feel like I have to cut back and not spend any money — like I can’t even go out to dinner.
The National Foundation for Credit Counseling just did their 2012 Financial Literacy Survey to learn how Americans deal with their finances. 56% of Americans don’t follow or have a budget. 33% of U.S. adults don’t pay their bills on time. We gotta get these numbers lower people!!!
I am done with the Budget word and am trading it in for a new title – Spending and Savings Plan! If we just shift our mindset and think about spending and saving as something that we get to control, it becomes a new paradigm. A spending and savings plan lets us make decisions about what we want to spend money on and what we want to save up for. It’s really empowering because we get to create something.
It’s not just about having a Spending and Savings Plan. It’s also about what you do once you set it up. You still have to live within your means, be disciplined and execute your plan. But give yourself a little wiggle room too. If your spending and savings plan is to save $1000 a month, make it automated and see if you can live on $1000 less a month. If it’s too hard to save $1000, take it down to a level that works for you.
Oh, and here’s a game changer. What if you didn’t cut back on your expenses, and just made more money? Aha! Now you’re on to something. By making more money, you are free to save more or spend more, or do both. I love this one and am feeling a little less nauseous!
© Copyright 2012 Justin Krane, CFP