|While we can’t control the economy, there is something you can do in response to what many people feel is a financial Armageddon. You can take control of your spending by developing a spending plan.Notice that I call it a spending plan instead of a budget. That’s because there is just some bad association with the word “budget”. Instead of the punishment of a budget, think of a spending plan as a tool to make you aware of your total spending, and facilitate conscious choices. Here’s how I can help my clients get control of their spending.First, I have clients do a “Bottom Up” spending plan that includes many categories that prompt their memory for frequent small and/or large infrequent expenses. It includes lines for income, taxes, and savings. Before it’s returned it to me, my clients will have a realistic idea of their real spending.Second, we may take a look at 3 – 6 months of statements for checking accounts and credit account or equity line statements to put a total number on the total spending or cash flow. I call this the “Top Down” approach.
When the two approaches get the same number, then we know we’ve identified current spending.
Finally, I work with clients to facilitate their choices/revisions in their current spending to develop a spending plan that helps them reach their financial goals.
Ready to take on and take control of your spending? Get in touch.