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  • Writer's pictureTerry Banks

Treating Personal Finances Like a Well Run Business (aka A Spending Plan Improves Money Habits)

In our side-hustle society, there is one well-paying gig that is often overlooked. That’s the part-time job of managing your money. A basic tool for creating a spending and savings plan is a budget. Budgets help us develop good money habits that lead to better money habits. Budgets are often considered to be restrictive, tedious, boring or hard. I believe that a budget is a mirror that reflects our values. Whether someone plans beforehand or not they still have a budget - their actions still demonstrate some kind of spending habits. Money Management Tip: It’s better to plan ahead and direct our money than look back and see that it has directed us.

Regardless of the size of the business, a budget is a tool that helps a business plan for how it wants to reach its goals. Out of control spending or unexpected expenses are major challenges for businesses especially in the startup phase. As an individual begins to use a budget as a planning tool for their goals the same can be true.

What if a company decided to close up shop instead of re-evaluating their goals and priorities and making simple adjustments? The personal equivalent of shuttering operations is to get out of the business of managing our money the first time our spending doesn't match our budget exactly. Don't give up! It's just feedback for the next time. It's all good information you can use to understand your unconscious habits and to take control and adjust for next time.

What if a budgeting tool was dynamic, simple and, dare I say it, fun? Picture yourself pre-paying for a vacation. How much more would you enjoy yourself if you knew you weren’t coming home to a big bill? Paying interest on umbrella drinks is the real hangover. Imagine having a lower car payment or affording a shorter payment term just because your credit score improved. How about reducing debt faster than you ever imagined because of the visibility of the impact of where you are directing your decisions. All of these and more can become reality with you becoming the CEO of your new part-time business of managing your money. Becoming a spending planner with the use of a spending plan worksheet puts you in control. With a little time and attention on a regular basis, you can have peace of mind around your finances.

Utilizing a Financial Coach is like having a personal trainer for your money. Find out if an accountability partner, guide or cheerleader is right for you by scheduling your FREE 30-minute Q&A call.


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