BLOG – My 2019 Spending Plan. I WILL succeed, if I ditch 5 things. (2 minute read) 

It’s easy to spend money. So, every year I make a Spending Plan. My 2019 Spending Plan is divided into 3 categories: Needs, Wants and Savings.

‘Needs’ are things that are needed. Food, bills, insurance etc. Everyone’s obligations are different, but for most of us, this is about 50% of our income. 

‘Wants’ are the things I want to buy and spend my cash on. If you want to give making a ‘Want List’ a go, the first thing that I did (Step 1 in my Underspent book) was I identify my passions and priorities. For me, that’s pottery, horse riding,  hiking and beach days. I have a 90 day ‘Waiting List’ for the clothes, books and homewares etc I “think” I want (9 times out of 10 I don’t!). The experts reckon this should be 30% of income, but everyone’s circumstances are different. For me in 2019 it’ll be about 25%.

‘Savings’. I don’t want to be ‘old and poor’ or stressing about money. I didn’t buy anything new or 2nd hand in 2014 and saved 38% of my take-home salary. This year I’m aiming at saving 25% of everything I earn. 

Sometimes Spending Plans stick. Sometimes they don’t. 

What can we do to keep our Spending Plans, budgets and savings going throughout 2019? 

Mine will succeed if I ditch these 5 things.

  1. Speculation – I’ll ignore the claims and beliefs that plans, budgets and New Years Resolutions inevitably fail. 
  2. Silly goals – If I set a goal to save 2% or 75% of my income I’ll fail. Both are unrealistic. Too easy and too hard. 
  3. Setbacks – If I fail once, I won’t give up. I’ll see it as a set-back and start again.
  4. Solo – I know that change, plans and projects need support. My mentor, coach and accountability buddies will help me succeed.
  5. Shops – It’s easy to resist temptation, if temptation isn’t there. If I wander around the shops at lunchtime it’s easy to see things I ‘want’ to buy, so I do something else instead!

How much will you spend in 2019? What’s your plan?

BUY the Underspent book. Available in e-book, iBook & kindle formats ($2.99) or paperback ($12.99) here https://amzn.to/2uGHYJh plus all book shops and online stores OR get a signed copy from me ($12.99 + P&P) via my website www.cyclingrachelsmith.com    I’ve purposely reduced the RRP to ensure the Underspent book is accessible and affordable. 

Until next week…