Ellen WaltersJul 13, 2025

HOW TO CREATE A SPENDING PLAN THAT WORKS FOR YOUR FAMILY

There is no need for guilt, guesswork, or broken budgets

If the word "budget" makes your stomach tighten, you're not alone! Most of us were never taught how to manage money in a way that feels both doable and empowering. That is why I often use a different term: spending plan. It may seem like a simple change of vocabulary, but it is actually a transformative way to view your finances. Deciding where your money goes begins to feel like intention rather than restriction. You are choosing where and how to spend your money, based on your goals and what you value.

 

What is a spending plan?

A spending plan is a monthly outline of your income, expenses, and goals. It helps you know where you are headed and how to get there. Unlike a traditional budget, a spending plan:

  • Focuses on values and priorities
  • Includes flexibility for the unexpected
  • Helps you spend without guilt

 

Step One: know your numbers

  1. Income: include take-home pay, VA benefits, child support, side hustles, etc.
  2. Fixed expenses: rent/mortgage, car payments, insurance, etc.
  3. Variable expenses: groceries, gas, dining out, household supplies, etc.
  4. Periodic expenses: birthdays, holidays, school fees, travel, etc.
  5. Savings & debt payments: include emergency fund, sinking fund, credit card payments, etc.

Tip: Use your bank statements or a budgeting app to track 1-2 months of spending

 

Step Two: identify your priorities

Ask yourself:

  • What financial goal do I care most about right now? (i.e., paying off debt, saving for a move, building an emergency fund)
  • What is not working in my current spending?

This step is about aligning your money with your values. If family time is a priority, maybe that means cutting back on eating out so you can go to the movies every month as a family.

 

Step Three: build a plan

Plug in your numbers into a spending plan format. You can use:

  • A spreadsheet
  • A budgeting app
  • A spending plan worksheet

Tip: Include a "buffer" category to prevent small overages wrecking your spending plan

 

Step Four: adjust weekly

You don't stop after one month. Your spending plan is yours to interact with and change as your goals change.

  • Do a weekly check-in
  • See what went over, what you forgot, and what needs adjusting
  • The goal is progress, not perfection!

 

Bonus Tips:

  • Give every dollar a purpose, even if that purpose is fun!
  • When mistakes happen, don't beat yourself up. Ask, "What can I learn from this?"
  • Remember to celebrate small wins! Wins don't have to be monetary, they can also be behavioral. Tracking every expense in a week and sticking to your grocery goal are both equally big wins!

 

Want help creating yours?

I work with individuals and families to build spending plans that feel realistic, flexible, and shame-free. Let's create your first spending plan together. You don't have to do it alone!

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