The Anti-Budget: Why a Spending Plan Is the Key to Financial Success

Welcome to Herfinance Club?with Sue Diamond, a weekly newsletter focusing on a holistic approach to winning with wealth.?Subscribe and share with your friends. Let us begin...

If you're one of the millions of Americans who dread the thought of creating and/or following a budget, you're not alone. According to Gallup, two-thirds of Americans don't bother creating a budget. And that's a huge mistake. A budget is essential for financial success, but it's not always easy to stick with them.

The main problem people have with budgeting is its approach. Most people see budgeting as restrictive and punitive, which tells them what they can't have. But a spending plan is different – it's focused on what you want to achieve. With a spending plan, you set goals and find ways to reach them.

What is a spending plan, and how it's different from a budget?

A spending plan is a map that shows you where your money is going and how it can help you reach your financial goals. It's a tool that allows you to choose your spending and saving, so you can achieve what's most important to you.

It's a way of examining spending choices more deliberately. It includes understanding your values better and then matching your goals and decisions with them so that it feels more straightforward, preferable, and important to save money.

Dr. Brad Klontz says, "A spending plan is different from a budget in that it's focused on supporting your goals rather than on your expenses, suggesting you have some control over your financial situation. Even a small sense of control can be a huge motivator. “You get excited about things you want to spend money on. And then you?want?to cut back on the things that don’t matter. It’s a complete 180 from how most people think about budgeting.”

Creating a spending plan can be easy and quick. And it doesn't mean you have to give up everything you enjoy. With a little effort, you can develop a spending plan that works for you and your unique financial situation.

Here's how to go about it:

1. Determine which values are important to you.

To identify your financial values, you must first understand what holds value in your life. Once you do that, you can focus your spending plan on those things.

Your values are the cornerstone beliefs that drive your life — they provide meaning and purpose to everything you do. In other words, they’re what is most important to you at a very deep level. You can use them as a compass for deciding how to spend your money wisely.

There are a lot of different things that can be important to different people.

For some people, their family might be the most important thing to them. They might want to ensure that they spend enough time with their loved ones and can provide for them.

Others might prioritize their happiness and fulfillment. They might want to ensure that they are doing things they enjoy and that make them happy.

Still, others might prioritize making a difference in the world. They might want to use their talents and abilities to help others and make the world a better place.

Values are important because they dictate how we spend our time and money. If we know what is important, we can make better choices about using our resources.

Think about what is most important to you and use that as a guide for making financial decisions. If you are clear about your values, it will be easier to stay on track when it comes to spending and saving money. Otherwise, you might end up spending money on things that you don't care about or that don't align with your goals.

Start by brainstorming and jotting down your top five core values. Remember, there are no wrong answers- so don't hold back! If you're having trouble getting started, here are some examples to get the ball rolling: accomplishment, excitement, alignment, kindness, sense of adventure, nature, religion, family, female empowerment, friends, contentment, honesty, social equity, idealism, commitment, security, independence, and choice are all factors to consider.

The exercise allows you to align your time and money with what you value.

"You decide what your values are in life and what you are going to do, and then you feel like you count, and that makes life worth living. It makes my life meaningful."

Annie Lennox

2. Map your values to your money goals

Consider how your values will shape what you want to do with your money in the future.

What goals do you want to achieve? Do you want to save for a down payment on a house, pay off debt, build up your emergency fund, or start your own business? Whatever your goal, make sure it's specific, realistic, and achievable.

List five things you’d like to change or do differently. Write them down as possible goals and connect them with your values. For example, if you place a high value on independence and flexibility, you might, for instance, forego some present comfort in exchange for greater financial security in the long run. If you place a high value on security, you may be willing to make sacrifices to pay off debt and save for an emergency; for example, you might decide to cancel your gym membership and start running instead to spend less money.

Some people find it helpful to start with their long-term goals and work backward to figure out what they need to do now. Others find it helpful to start with their current situation and monthly expenses and work forward from there. There is no wrong way to do this – it's whatever works best for you.

3. Stay motivated.

A spending plan is only effective if you stick to it. That means finding ways to stay motivated, even when the going gets tough. Here are a few tips:

• Set small goals. Rather than thinking about everything you can't buy, focus on what you're saving for. Whether it's a new car, a down payment on a house, or a dream vacation, keep your eye on the prize.
• Give yourself some wiggle room. A spending plan should be flexible enough to account for life's surprises. Build in some buffer room for unexpected expenses, and don't beat yourself up if you occasionally overspend. The important thing is to get back on track as soon as possible.
• Make it a habit. Budgeting should become a part of your routine. Set aside weekly time to review your finances and ensure you're sticking to your plan.
• Create a vision board with pictures of your goals to motivate you. You can also write down your goals and values in a journal or create a digital file to refer to when you need inspiration or motivation.
• Incorporate money mindfulness into planning your finances. This means being aware of your thoughts and emotions around money. Pay attention to how you make financial decisions – do you feel anxious, stressed, or guilty? Or do you feel proud, accomplished, and confident? The better you understand your relationship with money , the easier it will be to make choices that align with your values.
• Get support. Find a friend or family member who is also working on their finances. This can help you stay accountable and motivated.
• Seek professional help. If you need help sticking to your spending plan, seek professional help. A financial professional can help you create a plan that works for you and your unique circumstances. Please don't hesitate to contact me, I'd be happy to help you in any way I can.?Book a FREE Discovery Call.

With a spending plan, you can achieve your financial goals without feeling restricted or punished. It's a smarter, more effective way to budget, and it's the key to financial success.

On a slightly different note,

Can I solicit your assistance?

I'm running a poll on LinkedIn asking, "How do you feel about budgeting?" Could you please assist me by answering the question HERE ? Thank you ahead of time!

WEEKLY MONEY TOOL

__________________________________________________________________________

Digital Cash Envelope Banking For intentional Spending.

Qube Money is?a game-changing mobile banking app that automatically splits your money into separate digital accounts with the self-control of cash envelope budgeting, creating intentionality behind every dollar. You choose which qube you're spending from before each purchase, automatically limiting your spending habits and giving you a real-time snapshot of your spending strategy.

________________________________________________________________________

I'm excited to share a groundbreaking FREE Ebook that will show you exactly how to uncover and change your money story so you can live your best life.

I invite you to spend some time with your favorite people talking about this critical question: How can we uncover our money stories and transform our habits to win with wealth?

__________________________________________________________________________