Frustrated with How to Make A Budget?
Don't! Create a Spending Plan Instead

• Are you frustrated on how to make a budget?
• Does Budgeting make you say "ICK"! 
• Are you afraid of budgeting? Or you just don’t want to do it? 
• Do you think that if you create a budget that you will be controlled by it?
• When you say the word budget, do you get a chill up your spine?

Do you avoid any type of money management because you are afraid you will be asked to create a budget?

If You Answered "Yes" to Any of those Questions Read On

A budget is like a diet, and just as Dr. Phil says.  "Diets don't work."  For some people budgets just don't work. They are quick fix, that may last for a couple of weeks and then life will take over and the budget will go out the window! 

What if I was to tell you that you don't need to create a budget?  Now remember, I said you didn't need a budget, but you do need a plan. A Spending plan - Without a plan, nothing happens. 

Think of it your own life.  How many times have you planned to do something or thought of doing something without a well-thought-out plan, and then it never happens.  

Your spending plan is just a part of your overall money management plan. As you have seen our Overall Game Plan page and is part of Step 5 - Planning your future.

Now the best part about a spending plan, is that it is a part of your money management plan that you get to choose what you want it to look like, and how it will fit in your life.

Learn How to Manage Your Money - Not How to Make a Budget!

It is more important to learn how to manage your money, then how to make a budget. If you can't manage $100 then how could you manage $100,000. So learn how to manage your money by using a spending plan.

A spending plan is where you decide how you are going to spend your money. How much per month you will spend on:

• necessities (food, housing, insurance, car),

• education,

• paying off debt,

• fun and entertainment

• retirement savings

• savings in general

• contingency fund

Assign Each Category

Next take each category and assign a percentage to it. For example, you might choose to use the following example:

• 55% of your net income each month for your necessities,

• 10% of your net income for fun and entertainment,

• 5% of your net income for education (to learn how to create more wealth or whatever learning opportunities you want to have),

• 5% of your net income for paying off debt (assuming this matches with what your creditors want and it contributes to your get out of debt plan).

• 5% of your net income for savings (for vacations or that new flat screen tv)

• 10% of your net income for your retirement savings or financial freedom fund

• 10% or your net income for your contingency fund (6 months income in case of loss of income- or for those emergencies that may come up)

This is an example of a spending plan that I recommend to most people. You can adjust to it what works for you. But keep in mind that there are rewards and consequences for each change you may make. It could mean that you will take longer to pay off debt or save for a vacation. Or pay off your mortgage. So make sure that you go through the other steps in the money management game plan to know what is important to you.

You can see how a spending plan is easier to learn than to learn how to make a budget.

Is a spending plan doesn't work for you and you want to learn how to make a budget, check out our real simple budget.

A Real Simple Budget Paper, Pencil and Calculator
The easiest type of budget - A real easy way to learn how to make a budget.

Envelope Budgeting System
A simple, but possible out of date way, to budget your money.

Organize your Finances
You Need to Organize your Finances before you create your spending plan

Budgeting
Learn other ways to budget

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Questions about How to make a budget?

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