How to have a smarter spending plan

Everyone of us, at one time as fallen into that trap of excess spending. To avoid this, you need to consider the following smarter spending steps that will inspire an overall plan and new habits that will guide your day-to-day decisions.

    • First and foremost, set new priorities – Budgets revolve around 3 costs: food, housing, and transportation. After you budget for these expenses, which probably will account for between half to two-thirds of your take-home pay, and factor in any debt payments, you can decide how to prioritize savings, household expenses, professional expenses and entertainment. Those flexible expenses can be scaled up and down more quickly than fixed costs like rent payments.How to create a smarter spending plan
    • Harness the power of online tools – If you want to budget, you can simply use a smart phone app like Level money. On you can upload your credit card account information and get immediate insight to where your money is going. You can then use that information to start saving more money. Using these online tools, will go a long way to make it easier to manage your money.
    • Time yourself – If you have plans to buy a specific item, then you need to put in those plans earlier enough and budget for them to avoid buying on instincts.
    • Budget by the year, not just the month – Budgeting for the year helps to put in more buffer for unexpected expenses
    • Set money aside for fun expenses – Having money set aside for each of your expenses makes it easier to manage and track where the money is going. Some people overlook those small and inexpensive expenditures, only to discover late when they run of cash.
    • Consider your high and low points – Go back to the decisions you made earlier, to pinpoint your weaknesses. Also consider the good decisions you made like doing a price comparison before buying a car.
    • Take a spending diary challenge-Try to write down every single thing you spend money on for the last 1 month. Why and how it made you feel. Review the list, and see what is not supposed to be there.
    • Avoid Temptation – Avoid signing up for any promotional email that come your way. Cancel them if you have subscribed to avoid those tempting emails with shiny catalogs.
    • Reward yourself – Don’t deny yourself every material pleasure that comes your way. After hard work for your money, let it bring some pleasure. Maybe occasionally taking a meal out.
    • Share your budgeting/Spending plans – Simply share with your friends and get their feedback.

Author: John Mulindi

John is very passionate about Digital marketing. He blogs on topics ranging from Social Media marketing, Search Engine optimization, Internet Marketing, Email Marketing, to Personal Development. In free time he likes watching Football, Reading, Listening to music and taking Nature walks.

82 thoughts on “How to have a smarter spending plan”

  1. Your website is filled with lots and lots of helpful resources! I think I should start an expense diary and I will try out that app! Thank you and keep up the good work, John.

  2. Budgeting takes discipline, but it is so necessary so debt doesn’t pile up. That is not a good feeling. So important to budget and plan ahead.

  3. When I retired from teaching in January, my monthly income dropped by two thirds. Ouch! It’s been a tough transition, but I’ve incorporated a lot of your tips and it’s not quite as painful anymore. Thank you!

  4. Thanks for these great tips. It is definitely helpful for spending smarter and thanks for sharing.

  5. These are great tips. I try to budget accordingly. I do have a set number of money I want to spend in a week. But sometimes, I could spend a little lower or higher than my target due to various events.

      1. True but I just can’t budget to the penny. I have to have some leedway. I am not a big spending but I do have expenses that go up and down, like heat and water. Also, I might have to see the doctor, another expense, unexpectedly

      2. I do budget because my espenses are so tightly packed this year and I have no extra free money. So if I have to see the doctor, bye bye to a bill

  6. Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.

  7. I really need to go over my high and low points. My budget isn’t quite where I want it to be yet.

  8. We just purchased quickbooks in an attempt to help manage our spending but I just need to take the time to learn how to use it. Planning is usually the key to success.

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