How to Use Your Life Goals to Make a Spending Plan

by Miranda Marquit · 0 comments

When you’re thinking about money, chances are you are dissatisfied. This isn’t uncommon. Often, we run into situations in which we aren’t happy because we spend so much time doing things we don’t want to do, and we don’t always have enough money to spend on what we want the most.

In order to change things, it can help to take a step back, look at the situation, and then use your life goals to make a spending plan.

Decide What You Want from Life

Your first step is to decide what you want from life. Think about what is most important to you. Family? Faith? Community? Travel? Nice things? There are no wrong answers. It’s just about what you want most in your life.

Once you decide what really matters to you, you can figure out what steps you need to take in order to reach your goals. Really understanding your priorities is key to success in this matter. If you don’t know what you want, it doesn’t really matter in the end. Figuring out what you want from life is essential if you want to incorporate that into your spending plan.

Identify the Spending that is Holding You Back

After deciding what you want in life, and the steps you need to take to achieve it, it’s time to look at what might be holding you back. When I looked at the way I used my money, I realized that I spent money on things I didn’t care about. I value experiences, yet I kept spending money on trinkets and gadgets that didn’t matter to me.

I also realized that I had to spend more time working because I was paying for an expensive lifestyle that didn’t offer me much in the way of satisfaction. Changing things around, and cutting out the spending that didn’t matter to me, freed up quite a bit of money for me to put into what brings me satisfaction. I was also able to reduce my workload because my simpler lifestyle doesn’t require as much income to maintain.

It can be hard to change some habits, and you might have to contend with the need to pay down debt as well. However, if you can bring your spending in line with what matters to you, you’ll feel better about your situation, and you’ll eventually be able to dig out of the debt hole.

Plan Your Resource Use Around Goals

Don’t forget the long-term planning. You’ll want to plan your financial resource use around the specific goals you have for the future. For me, my priorities include setting money aside for emergencies and for retirement in addition to taking care of basic needs like food, shelter and clothing. I also make sure I have the time to volunteer in the community and spend time with my son. I’ve also started a “travel fund” so that money is automatically deposited in an account for that purpose. That way, I can plan for great trips without messing up my budget.

Creating a plan for your resources, based around what you want your life to look like, can help you trim the fat from your budget and live a more satisfying life.

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