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1. A budget feels restrictive. It suggests sacrificing what your want to do for what you should do. A spending plan recognizes that we must have some mad money, some makeup money and some magazine money. (Like our Pocket Money approach to balance impulse purchases, an important part of our Spending Plan.)
2. A budget implies that everything needs to be slashed and scrimped. A spending plan says, “Here is what you should be on spending on groceries, vacations, car repairs… now go spend it”.
3. If you fail to plan, you plan to fail. You need a plan to get to where you want to go… the word “budget” just doesn’t carry the same forward thinking as a “plan”.
4. A budget sounds a lot like a diet. How much more likely would you be to follow a new way of eating if you called it an “eating plan”! The words we use matter.
5. Since Spending just sounds more fun than Saving, be sure to include lines in your plan to “Spend” on your retirement, your kids education, etc. (You can trick your brain, can’t you?)
Have I convinced you to make a Spending Plan? I’ll be back in a few days with a post on how to make a Spending Plan that works for you.
We think saying, “that’s not in my Spending Plan” has a way better ring to it. Do you agree?