Money Sense. DON’T Start With a Budget: How to Plan Your Spending Instead

• Do you know why budgets don’t work for women who’ve never had a budget? Two reasons. One, mindset. Many women resist a budget because it feels like a punishment. It feels restrictive and limiting. Two, she creates a budget without knowing the truth.

• Here’s a tip! If the word budget is off-putting to you, change the name. Decide to call it something else. 
• Instead, choose a name that feels like you’re in control, like you’re empowered, like you’re confident in your financial decisions. How about a spending plan? Money plan? Cash flow plan? Financial freedom plan? Work optional lifestyle plan? Choose a name other than budget.  
• Numbers don’t lie. Know your numbers. Look at the truth for what it is. Before creating a budget do your research and analysis. Research your previous spending patterns.  Investigate what expenses you’ll have in the future.  
• Prioritize your spending by category. What is most important to you? Second most important to you? And so on. Once you’ve done these things then you can create a budget.
• Assign dollar values to your spending categories. Remember that your basic needs should take priority over wants and things that don’t bring you joy. Easily forgotten are expenses that happen just on occasion or rarely. As women, we tend to put others’ needs ahead of our own. Be sure to allocate money for you; education (formal or informal), self-development and personal care.
• Analyzing your income and expenses, and giving directions to both, requires your attention. How much of a surplus do you have? Are you short? What needs to increase, decrease or be redirected?
• If the thought of knowing your numbers makes you twitchy beyond reason, do this instead. Open a separate account or accounts and set up automatic transfers into them and use those accounts for specific expenses. You may choose to have an account that you only use for expenses related to your pet(s). Love giving gifts, but hate the credit card bill that comes the next month? Save throughout the year for birthdays, holidays, and special events like housewarming, wedding, and baby gifts.

Interview: Melissa Myers.

Melissa Myers, CFP® is a heart-centered financial planner and typically works with women who are solely responsible for their own financial future. She helps them align their money with their values so they can live their ideal lives and be a blessing to others.  Myers is a business owner, co-founder of Kar-Mel Financial Planners, creator of Sunkissed and Blessed lifestyle brand, and has been a featured guest on podcasts: Diary of a Small Town Girl and Casa DeConfidence.

Melissa is passionate about empowering women with money and is also the bestselling author of Going Rogue! Unconventional Financial Strategies for Women.