Some call it Budgets and others call it Spending Plans. I prefer to call these Spending Plans.
Have a clue what is coming in, plan for what will go out, know what needs keeping and make room for life.– Praus Life Finance
A Spending Plan (or Budget as some call it) is key to your financial freedom or an anxious-free financial life.
No matter how much you earn or legally receive each month, a spending plan allows you to plan for a a period of time usually a month, quarter or a year knowing that what you have will meet those needs you have clearly identified.
As much as we cannot predict the future, creating an Annual Spending Plan in advance of a coming calendar or financial year, is always a good way to plan ahead an work towards your goals. You still have the opportunity to make adjustment when life happens.
In this series, we will look at the four main aspects of a Spending Plan.
Over the next few days, we will run through each aspect of a budget and at the end of the period share a simple budgeting template with you.