Plan It Out
Hello Community! I hope this week has treated you well so far (and continues to do so). Before you head out for the day I wanted to talk about something that may come in handy during the upcoming gift-giving season. What is that you ask? It's a Spending and Savings Plan. Here are some pointers to keep in mind.
A spending and saving plan is very similar to a budget, which is intended to help you outline where income is earned and where expenses are incurred. When this plan is implemented as a tool to help you reach your financial goals, it can be used as a road map of sorts to monitor spending and show you appropriate methods for saving. Sounds like a win-win!
The first and foremost thing to remember when it comes to creating your plan is balance. Now that doesn't necessarily mean you're spending half of your income, and saving the other half. This more commonly means the amount is split in a few different percentages among spending, saving, donating or giving. Everyone's balance is different, but it's important to find out what works for you spending and saving behavior.
Now that we have that lined out, you might find yourself saying, "A Spending and Savings Plan is too time consuming and boring." But a plan can help you:
- Get into the rhythm of tracking your income and expenses.
- Is easy to maintain once established.
- Can be connected directly to your bank through their app or another third-party app.
What if, "I have a limited income and barely have enough to make ends meet." In this case, a spending/saving plan:
- Will help you make the best financial choices.
- Bring areas of where you need to cut back and make changes to light.
Or you may be thinking, "I don't need a plan. That's for people with money trouble." Well, this type of financial planning can:
- Verify you're being smart with your money and resources.
- Protect your financial future.
I hope this info helps you find balance during this time of year when we're usually spending more. Additionally, you can help maintain your plan by tracking every single penny (yes, even a vending machine drink), write down transactions in a small notebook or use an app, like QuickBooks, to help you track your spending. Do you have some tips that will help with a saving and spending plan? We'd love to hear them if so!