Spending Plans/Budgeting: Reframe Your Financial Future

Spending Plans/Budgeting: Reframe Your Financial Future

We all know we should have a budget, but let's be honest—they often feel scary and restrictive, so many of us don't bother.

But what if budgeting wasn’t something to dread? Imagine reframing it as a spending (or saving) plan that helps you master your money and create your version of financial independence. How does that feel now?

A spending plan is your tool to track where your money is going and ensure it aligns with your dream life, instead of getting spent on things you don’t care about and more than likely will have forgotten about in six months.

I’m not a fan of restrictive budgets. Instead, I suggest focusing on your essential bills, automating payments, and setting clear amounts for saving and spending.

The first three steps to organising your spending are:

1. Automate Your Essentials: Set up automatic payments for your essential bills so you never miss one again. Goodbye late fees!

2. Allocate for Spending and Saving: Determine a fixed amount for saving and a separate amount for spending each pay period.

3. Separate Your Spending Money: Transfer your spending amount to a different bank account or withdraw it in cash. This way, you can spend it freely throughout the month without monitoring every penny.

But remember, once it's gone, it's gone! So, stay mindful and avoid splurging on things you don’t really need.

Having a set spending amount each month encourages you to think more intentionally about your purchases. Would you prefer to spend on drinks every other night, or save that money for a special experience with a partner, friend, or family member? Maybe invest in self-care, like a massage or a spa day? Or invest that money and watch it grow for your future?

Are you getting the best deal?

When it comes to your essential bills, make sure you’re getting the best deal possible.

• Are you paying less than £10 a month for your phone contract?

• How much are you spending on internet services?

• When was the last time you reviewed these costs or negotiated with your suppliers?

• Are your insurance premiums competitive?

• Are you on the most cost effective energy plan?

If you’re out of contract and haven’t renegotiated, you’re probably overpaying.

Clients of mine have saved over £1,000 a year just by reviewing their bills, negotiating with current suppliers and switching to better deals. These are simple steps that can save you a lot of money, yet they’re often overlooked.

Automate, Automate, Automate

Automating your money management reduces stress and saves you time every month. Imagine paying yourself first on payday and still having money left at the end of the month - no more worrying about whether your card will decline a week before payday. How good would that feel?

Take control of your financial life

When you take control and face your finances head-on, you can start building your own path to financial independence. Whether it’s saving for a house, planning for early retirement, or taking a year off to travel, the possibilities are endless when you master your money.

Remember, money is a skill anyone can learn. Just like walking, talking, riding a bike, or driving a car, with a little effort, you can master it.

Money influences every aspect of our lives. Learn how to earn more, spend less, and invest the difference, and you’ll be amazed at how your life changes.

Scared to do this alone? I'm here to help! Book a Money Insight Session today and we can make a plan to change your financial future together.