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.
Harness the power of online tools
If you want to budget, you can simply use a smart phone app like Level money. On Mint.com 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.
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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.
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Share your budgeting/Spending plans
Simply share with your friends and get their feedback.
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Comments
99 responses to “How to have a smarter spending plan”
[…] Related: How to have a smarter spending plan […]
I absolutely feel you on the plan for the year tip. Hate to admit it but this is why I’m dreading having a no-vacation year.
Hi Rose, a long term budget can help take care of unexpected expenses that might occur. I appreciate your feedback.
This is a perfect time of year to think about spending as all the holiday bills are coming in. Thanks for the suggestions – I especially like the spending diary.
Hi Elaine, I appreciate your feedback!
I like the idea of a spending diary. It’s the little things that we forget about that really add up.
Hi Alison, thanks for dropping by!
Great tips for the new year! I need to get back to a budget plan.
Hi Stacie, I appreciate your feedback.
I like your post about budget for the year and not just month. I do have to figure that out. Shopping for groceries is causing a killing on my extra money. It’s crazy how much food costs!
Hi Ann, you can budget for say 6 months or a year, and make changes where necessary to consider other factors like changing food prices.
I am so glad that you stated that it’s ok to treat ourselves. I think sometimes we feel that we just have to work and live to pay off bills. It’s true but good to do something we enjoy.
True, glad to get your feedback!
Great tips! I have recently started tracking my spending and noticed some spots where I could be saving more money. Feels good to have a plan 🙂
Hi Deanna, glad you found this article useful.
Saving is hard! SALE is my favorite 4 letter word! You’re right a treat in moderation should be ok!
Hi Kathleen, thanks for dropping by.
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.
Thanks for your feedback, I think am just starting, and yet to reach my goal.
Some really great advice here John! Especially these days with many people struggling to just get by
Thanks for visiting.
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.
True, thanks for your feedback.
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!
Welcome Shirley!
Thanks for these great tips. It is definitely helpful for spending smarter and thanks for sharing.
Hi Thomas, am grateful for your visit.
This is great advice. Im in teh middle of budgeting right now so any tips are appreciated !
Your feedback is well taken.
I’ve been trying to get better at budgeting my money so this was super helpful! Going to share this with my friends as well.
Thanks for the positive feedback.
Creating a budget for the entire year is a great idea! I need to find an app to help with that. Thanks for the tips!
Welcome.
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.
Thanks for your honest feedback. Budgeting is one way you can use to control your expenses.
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
Noted.
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
That is why we put a side some money for emergencies!
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.
Hi Dutta, that is why I always have a budget, to help me keep control of my expenses. Thanks very much for the insightful comments on this post!
Thanks for the amazing tips. Smart spending is always on my mind.
Appreciated.
I really need to go over my high and low points. My budget isn’t quite where I want it to be yet.
Thanks Rosey, for your feedback.
Those are amazing tips to budget and get a hold of our personal finances!! Love it!
Thanks.
Great post. Thanks for this great tips and advice. I will try to incorporate them this year.
Glad to know that. Thanks for dropping by.
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.
True, thanks for reading.
I use the all MINT to help with this and it’s sooooo great!
Thanks.
Thanks for the tips. everyone of us needs a reminder of smarter spending from time to time.
True! Thanks for visiting.
The post contains fresh essence of ideas that will help growing business and career. The smart spend plan is cool 🙂
Thanks for reading!
This tips are superrrr helpful! Thank you so much for sharing!
Welcome.
these are all very good tips. i am an accountant by trade, so am very meticulous in budgeting and tracking spending in my persona life, and i follow all of these.
Happy to learn that. Welcome.
I totally agree with budget by the year, not just the month as you never knew there are unexpected expenses pop out.
Appreciated.
Informative and well written and to the poiint, really appreciate you sharing this.
Thanks.
[…] You can also read: How to have a smarter spending plan […]
Thanks for these great tips and advice!
Welcome.
All your articles are very helpful, thanks
Hi John, thanks for visiting.
Very good article, it will help me for sure.Thanks
Welcome.
Budgeting is really important. Without tracking the budget, saving becomes so difficult. Rewarding yourself is the best part. Thanks for sharing.
Hi, thanks for the positive feedback. Welcome.
Awesome tips and perfect timing. Holidays are here and we all tend to overspend. Budgeting and tracking our expenses should help us spend smart. Thanks for the suggestions!
Hi Evelyn, true, holidays seem to make people overspend but with a good plan in place, we can use our money well. Thanks for visiting.
These are some smart tips, we need to get better about sticking to our budget.
Well noted. Thanks.
Great tips!
Made for interesting reading. Some really useful tips. Thanks.
Thanks. Welcome.
A few of these I already do… but I found number of others that are very helpful suggestions that I’ll be able to work into my life. Thanks so much!
Hi, thanks for the positive feedback
[…] How to Have a Smarter Spending Plan from Business and Life Tips […]
Great tips! Great to have you link up at Booknificent Thursday on Mommynificent.com this week!
Tina
You are most welcomed.
[…] You can also read: How to have a Smarter Spending Plan. […]
I always think that a review of priorities is very important when discussing budgets and spending plans.
True, thanks for reading.
These are great tips that I will be using this year in my life . Thank you ?
Most welcomed, and all the best in this new year.
These are great tips and advice I will be taking with me into 2018.
Am glad that you found this article a great help for your personal finance.
I agree with the idea of rewarding yourself. It helps you to stay on track knowing that you will get to spend money on something fun.
Exactly, save but keep in mind we live life in presence.
You have specified everything how to spend money and surely i will try this which will help me in saving money.
Am glad that you find this post helpful to your money management. Most welcomed.
Great post. Budgeting for the year is a good tip. I have a been using an app called prism for budgeting and it’s made a big difference for me.
Yes, I too use an application to budget and track my expenses. Am able to plan well in advance. Thanks for dropping by.