Why take the time to create a spending plan?

We are all busy – why use your precious free time to put together a budget – and put it down on paper no less?

I’ve listed several reasons for you to ponder.
• How about some stress relief? Gaining control over your finances relieves the constant worry over money – and the fear that comes from not knowing how you will cover all your bills.
• Better communication with your spouse. A high percentage of marital discourse is over money. When a plan is agreed upon, and in place, many disagreements can be avoided.

• It improves your health! By planning ahead for the annual deductible and co pays required from your health insurance you don’t have to put off going to the doctor, dentist, or eye doctor. Taking advantage of your company’s flex spending plan can help you to pay for preventative care you and your family needs to stay healthy!

• How about improving your credit? By making sure you pay your bills on time and monitoring the balances on your credit cards you build up your credit score. Having a plan to pay off the balances on your credit cards and to stop creating debt will improve your financial standing.

• Do you want to reach your goals? First you have to figure out what those goals are and prioritize so that you can work out a realistic spending plan that allows you to achieve those goals.

• Preparing for unexpected events can help to soften the blow when they come up – and they will! Car repairs, dental bills, a speeding ticket – even Christmas – can become emergencies if you don’t prepare and set aside money to deal with them.
• A budget (spending plan) gives you the power to decide where you want to spend your money. It is proactive – not reactive.

• Time spent in creating a spending plan, is time well spent. How much would you pay for peace of mind? When you know that you have a realistic plan in place that covers your monthly expenses and your savings goals, peace of mind is not far behind.

How do you create a spending plan?

• Know what your income is. Be realistic.

• Calculate how much your regular expenses are so you (and your spouse) have a clear picture of where your money is going.

• Ultimately bring your spending in line with your income so you don’t accumulate debt.

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