If you’re anything like me, the word “budgeting” might make you cringe a little. For years, I had a love-hate relationship with budgets. I’d start with all the enthusiasm in the world, sipping coffee at my kitchen table and itemizing my expenses… only to give up by week two because things felt too rigid or just plain overwhelming.
Then, I stumbled upon something refreshing called a spending plan. The concept isn’t exactly “new” in the finance world, but it felt like a revelation in my own life. Unlike traditional budgets, which often focus on what you can’t do with your money, a spending plan shifts the spotlight to what you can do. Spoiler alert: it completely changed the way I thought about saving and spending, and it might just do the same for you.
Before you start imagining spreadsheets or complicated financial jargon, don’t worry. This method is simple, flexible, and surprisingly fun. Here’s my personal take on why it works and how it could work for you, too.
First, we need to talk about what a spending plan actually is. Think of it as budgeting’s cooler, laid-back cousin.
Instead of rigidly trying to cram every expense into a strict category (and beating yourself up if things don’t go perfectly), a spending plan is all about intentionality. You take your income, allocate it based on your goals, and decide what actually matters to you. It’s permission-focused, meaning you’re giving yourself space to spend on what you love—but you’re also being mindful about cutting back on things that aren’t priorities.
For me, it felt less like I was being “policed” by my finances and more like I was reclaiming control.
Here’s where the magic happens. Spending plans can be tailored to your life. Hate meal prepping? That’s fine; you can work takeout into your plan. Love spontaneous splurges? There’s room for that, too. This approach is less about perfection and more about progress.
Set aside 10 minutes with a piece of paper (or your notes app), and jot down your top three financial priorities this month. Whether it’s building an emergency fund, paying off debt, or treating yourself to a concert ticket, this focus will guide your plan.
Raise your hand if you’ve tried budgeting in the “classic” sense only to abandon it completely. Same here. The issue was that traditional budgets felt too restrictive. They often left me feeling guilty or frustrated every time I “failed” to stick to them.
What I love about spending plans is that they ditch the black-and-white approach of “success” and “failure.” Instead, it’s about finding balance. Sure, there are months when I overspend in one area, but the beauty of a spending plan is that it adapts.
One of my biggest breakthroughs? Realizing that no single month looks exactly the same. Life is messy and full of surprises, and your plan can be just as flexible as you need it to be.
Here’s an example. Say you saved $100 less than expected this month because you had a spontaneous weekend trip. With a spending plan, instead of dwelling on the “loss,” you adjust your savings goal for next month. Small tweaks keep you pacing toward your goals, rather than giving up completely.
Think of a spending plan as a pie chart. (Mmmm, pie.) When you break down your income, there are three main sections the plan works best around.
This is where you put your essentials like rent, groceries, bills, and transportation. These are the non-negotiables and should take up roughly 50-60% of your income.
Yes, you read that correctly. Wants get their own category! This might be eating out, hobbies, travel, or new clothes. These shouldn’t feel like “extras”—they’re a part of your life and deserve intentional space in your plan. Experts often recommend dedicating 20-30% here.
Saving isn’t just about hoarding cash for emergencies. It’s also about what excites you, like buying a home, traveling, or just having financial peace of mind. Aim to set aside 20% of your income here if possible, but even small regular contributions matter.
The beauty of this setup is that you focus on what feels balanced for YOUR life.
Pick a day this week to “audit” your past month’s spending. Was there anything surprising? Knowing where your money is going makes it easier to adjust goals moving forward.
I’m not exaggerating when I say the simple mindset shift of using a spending plan turned my saving habits on their head. Here’s what I mean.
Instead of thinking about “not spending,” I started focusing on spending with intention. Suddenly, saving money didn’t feel like deprivation. For example, cutting back on daily coffee runs wasn’t me “losing” something. It was freeing up money for a trip I’d been dying to take.
Spending plans also helped me reign in impulse buying, which has always been my kryptonite. Now, when I feel the urge to splurge on random Amazon finds (guilty!), I check my “wants” budget. If there’s room, great! If not, I don’t beat myself up—I simply plan for it next month.
Small but powerful decisions like these add up. And for the first time, saving actually feels sustainable.
One thing I swear by? Automation. Setting up recurring transfers to your savings account could help you keep goals on track. Whether it’s $50 or $500 a month, paying yourself first clears that mental hurdle of “do I have enough to save?” Trust me, you’ll barely notice it’s gone.
Okay, real talk. When I first came across spending plans, I thought, “This looks cool, but what if I’m not making enough money to ‘plan’ with?” This is a super common misconception. Spending plans aren’t about how much money you have; they’re about how you manage it.
It doesn’t matter if your income is $2,000 or $10,000 a month. Having a framework to work within helps you make the most of what you’re earning. Small changes, like cutting back on unnecessary subscriptions or sticking to simple savings habits, can lead to meaningful results over time.
And for fellow perfectionists? Spending plans are NOT about getting it “right” every month. They’re about building habits, practicing consistency, and giving yourself grace along the way.
Here’s a quick roadmap to crafting your very own spending plan.
And remember, start small. You don’t have to overhaul your entire financial life overnight. Focus on progress, not perfection.
Switching from a budget to a spending plan isn’t just a financial change; it’s a mindset shift. It taught me to look at my money with clarity, grace, and even a little bit of excitement. You deserve tools and habits that help you thrive—not systems that make you feel stuck.
Whether you’re a budgeting skeptic or just looking for a fresh perspective, a spending plan might be the little nudge you need to take charge of your finances. It worked wonders for me, and I hope it helps you, too.
