How to build a spending plan
Refresher — a boring budget redefined is a spending plan. We can talk about it all day long, but until you take one for your own test drive, you won’t know how easy it is. Good news? The earlier you get into the habit of planning your spend, the earlier you set yourself up for success. The better news? MG’s got your back with a template. You know we’re all about the scripts and templates.
The saying that “the best things in life are free” is cute, but at MG HQ we know “the best things in life are actually really expensive.” This is why spending plans are key — life is to be lived and you will spend. You may as well spend intentionally and know where your dollars are going.
Could you hypothetically call this a “budget”? Sure. But budgets tend to feel restrictive, as though you’re not in the driver's seat. A spending plan is made so you can decide how you get to spend NOT how you have to save.
| 50 - 30 - 20 |
50% of your income should cover needs. AKA a roof over your head and food in your belly, the minimum of what you need to live your life (not your Instagram best life).
30% of your income can cover wants. AKA the workout classes you can survive without but want for mental sanity, or that dinner you could cook at home but would rather have out with friends because it’s been A WEEK.
20% of your income should be for saving for the future you. We know 20% isn’t the easiest to attain right out of the gate. But get as close as you can and your future self will thank you. This is also the bucket that you use to build up your emergency fund. Once built, excess dollars in this bucket can be deployed into investing.
By being you — a member of MoneyGirls. We’re kickstarting your money management savvy with this freebie, a template that covers how your life probably looks now and over the next two years. People can make spend & save management as complex or as basic as they’d like. We decided to choose a happy, straightforward medium. Like it? Share the wealth with friends.