Categories: Personal Finance

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 

How to create a smarter spending plan

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.

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.

Also Read: Personal Financial Strategies to Last a Life

Share your budgeting/Spending plans 

Simply share with your friends and get their feedback.

Unlock the secrets to success in business, digital marketing, personal finance, and more by subscribing to our newsletter from Business and Life Tips 

Related: Effective personal finance tips resources

John Mulindi

John writes on a variety of topics. He blogs on topics ranging from social media marketing (SMM), search engine optimization (SEO), search engine marketing (SEM), email marketing, business, personal finance tech, entrepreneurship to personal development. In free time he likes watching football, reading, listening to music and taking nature walks.

View Comments

  • 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.

  • 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.

  • 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 :)

  • Saving is hard! SALE is my favorite 4 letter word! You're right a treat in moderation should be ok!

  • 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.

  • Some really great advice here John! Especially these days with many people struggling to just get by

Recent Posts

What is My Funded Futures? Are Prop Firms Good?

A trader's chances of success can vary greatly depending on their access to sizable funds.…

1 month ago

How to Break Bad Habits and Form Good Ones

Image: Unsplash Habits are hard to change, as they are regular tendencies or practices you…

2 months ago

Features that make ChatArt AI Writer a Top Tool for Content Creators

Artificial intelligence (AI) has really been a game changer for writers; it has revolutionized how…

2 months ago

Social Media and Your Career: The Fine Line Between Transparency and Oversharing

Photo by Freepik Social media presents significant opportunities for professional advancement by sharing your career…

3 months ago

E-commerce Success: Strategies for Online Growth

The digital marketing place has always been and forever will be a competitive arena, especially…

4 months ago

How To Foster A Thriving Company Culture During The Era Of Remote Working

Remote working is on the rise. While working from home was becoming more popular before…

4 months ago