Pretend It's Not a Budget: How to Create a 'Spending Plan' You Can Stick To

In 15 years of coaching people on their budgets, I've found that maybe other than "death", "IRS", and "cancer", "budget" is the most-hated word in the English language. People hate the word, what it represents, and the thoughts of deprivation and constraint it puts into their minds.

But maybe this post will help a bit. It's from Market Watch and details how you can create a budget (or spending plan) that you'll be able to stick to.  Their key thoughts:

Automatic withdrawals from your bank account into a retirement or savings account, or from your paycheck into an employer-sponsored plan [help you budget].

Others agree tallying expenses is often more an obstacle to budgeting than a means to getting it done. She recommends a strategy that relies on smart estimations rather than detailed lists of each and every purchase.

The biggest source of money hemorrhage is usually the daily outlays that vary each week, including morning coffee, dry cleaner, and gas for the car. The most important thing to do is decide on a specific amount you want to spend each week on variable expenses, Hayden said.

"Almost every client we coach has some resistance or dislike to budgeting," Gottfurcht says. To ease the pain, avoid the word "budget," and use "spending plan" instead.

Another idea Gottfurcht employs with clients: Break the budget process into small bites.

I must admit that I often call a "budget" a "spending plan" to help people cope with the task a bit better. It works at first, but then they figure out that the two are the same thing and it goes downhill from there. ;-)

Here at FMF, I recommend a simple budget plan and suggest you give You Need A Budget a try. They have a money-back guarantee and offer a simple, easy way to track your spending.

Comments

[MoneyDummy]

So you do this professionally? This is a job I would enjoy. What, exactly, is this job called?

[Cathy]

The first time I learned about a "spending plan" (when I was just out of law school and knew nothing about money management) it sounded like a good idea. But you're right, it doesn't help anymore! Now I just have to make myself do it :)

[aleish]

When i was studying in college, i really need to budget my money. I made a budget plan for the week and I went grocery shopping once and buy what is only needed for that week.

[Jimmy]

I need this program for my soul and thanks for the help pal..YOu are helping me one step closer to saving my own world

[thomas odoh]

I love the way you address budget and for me i think it is the best way to be rich. If one discipline himself for a while i believe to become rich is made easier. merticulous planning and spending give one a sense of belonging.

[adheel]

I think now i had reach a new world ! your idea was so good to me ! now i can save more and more money! i think this site is cool and good for all ! tanks for your lessan