Wealth and financial security are built by how you spend! Whereas the amount of money you make is important, it is not singularly as important as how you spend. To spend properly you need a Spending Plan! It is not about cutting back on spending (budgeting), rather it is planning to spend every dollar every month! The following are the elements of such a monthly Money Mastery Spending Plan:
- A balanced Spending Plan which is gross income minus taxes = total for spending applied to Spending Categories.
- Track expenditures against the What’s Left amount per category.
- Reconcile Monthly
a. Confirm all expenditures for the month have been posted.
b. Enter any difference between actual income from all sources with the Plan amount.
c. Adjust Spending Plan amounts to accommodate any trends that would require a rebalancing of the Spending Plan.