How to Develop a Spending Plan

Editor Financial recovery June 21, 2024

Develop a Spending Plan

A good way to start taking control of your financial situation is to develop a personal spending plan. A spending plan is a step-by-step plan for meeting expenses and financial goals in a given period of time.

 

How many of you already have a spending plan? What are some of the benefits of a spending plan?

 

Following a spending plan:

• Helps you know what your income and expenses are every month
• Reduces the anxiety of not being able to meet your expenses
• Gives you a sense of control over your money because a spending plan is all about choices—choosing how to use your money
• Helps you build assets that will improve the quality of life for you and your family

Spending Plan Tools

 

Keeping accurate records helps you successfully implement and follow a spending plan. Here are some recordkeeping tips:

• Keep financial records in a safe place or in a safe deposit box.
• Organize your files so it is easy to find important financial information.
• Keep your tax records for at least three years.