05 Mar Why budgets don’t work, but this will
If you struggle to save money, pay off debt, and have no clue where to even begin. Then you don’t need a budget; you need a Money Plan!
Budgets don’t work! I know that’s a bold statement to make and probably an unpopular one, but hear me out. If you want to stop wondering, “where did all my money go” then you need a plan, not a budget.
The difference between a budget and a money plan
A budget says, “You can’t control your spending, so therefore you cannot be trusted or control yourself.”
This only enables a lack of self-confidence when managing money or dealing with financial decisions.
A money action plan says, “I know exactly where my money goes and how it is spent. I have enough money and know my capacity to bring in more money is unlimited. My money action plan affords me the freedom and confidence to not just be in control but to enjoy the pleasures and joys that having money can buy me.”
This creates a strong and confident money mindset whilst also developing confidence with making financial decisions.
A budget is only “step one” in effectively managing your money. And because money management is not a topic taught at school, it’s ok to feel completely clueless. I’m here to help!
So how exactly do you create a money action plan?
Firstly, it’s important to recognize that the point of a money plan isn’t just to have more money or control your spending. It’s to be happier with the money you have and how you are spending and investing it!
The purpose of creating a money plan is to create more clarity around what your goals are and fewer feelings of anxiety when looking at your accounts. The intention is to feel more confident about how you manage your money.
And you do this by having a plan or, as I like to call it, a M.A.P. = Money Action Plan.
The 3 simple steps of an effective Money Action Plan
Step 1. Identify
- Where is your money going?
- What are your spending habits?
- What area of your life is costing you more than you realized.
Step 2. Plan
- How much do you want to save each month?
- How much should you have in an emergency fund?
- What are you saving for?
Step 3. Execute
- How important is it to you to achieve your financial goals?
- How will achieving your financial goals make you feel?
- What limiting belief is holding you back from achieving your goals?
These three easy steps are essential to managing your money and creating a successful Money action plan. But remember, the only thing that really determines your success is your choices.
Success is defined by your choices.
It is those choices that lead you to create the desired financial success and goal achievement you want. You can only begin to see a physical change in your life when you start to be highly conscious of your habits and choices.
So remember that there are no shortcuts and no quick fix. There are only the choices you get to make each day and whether those choices support your goals and dreams.
It might sound cliche, but Rome wasn’t built in a day. Be patient with yourself! Anchor yourself with persistence, perseverance and patience.
Ready to create your own Money Action Plan?
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