Create a Spending Plan

Draw a Spending Map So You Don't Get Lost

Putting your financial goals in writing can make them seem more concrete and achievable. However, it's easy to allow everyday purchases and obligations to get in the way of saving for the future. One of the best ways to make sure your daily spending habits don't overwhelm your life goals is to create a spending plan. A spending plan is not meant to be a strict budget. Instead, it's a guide that will help you take control of your financial future and, ultimately, reach your goals. To create your spending plan, follow these four steps:

• Step One: Identify Income.  
• Step Two: List Expenses. (Review the Tracking Your Expenses Worksheet from Know Where Your Money Goes, or create one now if you don't have one.) 
• Step Three: Compare Income and Expenses. 
• Step Four: Set Priorities and Make Changes.