Comments on: Budgets And Spending Plans – Two Sides Of The Same Coin? http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/ Frugal living and debt reduction tips for a better financial future. This is one family's story. Fri, 27 Jan 2012 20:52:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: bouncing back betty http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57458 bouncing back betty Wed, 22 Oct 2008 15:07:50 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57458 Great post. I've been having "issues" with a Budget, but a spending plan fits into my lifestyle so much easier and I'm less stressed about it as well. Great post. I’ve been having “issues” with a Budget, but a spending plan fits into my lifestyle so much easier and I’m less stressed about it as well.

]]> By: Saver Queen http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57319 Saver Queen Wed, 22 Oct 2008 03:39:05 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57319 I totally agree with your post. It sounds like a "spending plan" is for folks who just don't want to discipline themselves enough to stick to a budget. It's easy to make excuses. LIke you say, a "well-crafted" budget should be designed to account for emergencies and happenstance. The thing I do like about the concept of a "spending plan" is that it focuses on what you can spend as opposed to what you can't. For example, when you're on a diet, it's best to concentrate on what you can eat, rather than what you can't. I think the same goes for spending. Looking through the right lens, budgets and spending plans both give you freedom as you feel an increased amount of control over your life. I totally agree with your post. It sounds like a “spending plan” is for folks who just don’t want to discipline themselves enough to stick to a budget. It’s easy to make excuses. LIke you say, a “well-crafted” budget should be designed to account for emergencies and happenstance.

The thing I do like about the concept of a “spending plan” is that it focuses on what you can spend as opposed to what you can’t. For example, when you’re on a diet, it’s best to concentrate on what you can eat, rather than what you can’t. I think the same goes for spending.

Looking through the right lens, budgets and spending plans both give you freedom as you feel an increased amount of control over your life.

]]> By: Marci http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57198 Marci Tue, 21 Oct 2008 18:34:50 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57198 Mine is two groups and savings... I cash a check for $310 each month. That pays for gas, groceries, gifts, grandkids, and goofing around. I don't worry about what I spend it on within that grouping - that's all the cash there is for the month for those items - period. Every third paycheck goes directly into savings. The others sit in the account until needed for the utilities, car insurance, house insurance, property taxes, and medical. It's very basic - and very easy :) Being debt free helps as there aren't many monthly bills to pay except the utilities. Mine is two groups and savings…

I cash a check for $310 each month. That pays for gas, groceries, gifts, grandkids, and goofing around. I don’t worry about what I spend it on within that grouping – that’s all the cash there is for the month for those items – period.

Every third paycheck goes directly into savings. The others sit in the account until needed for the utilities, car insurance, house insurance, property taxes, and medical.

It’s very basic – and very easy :)
Being debt free helps as there aren’t many monthly bills to pay except the utilities.

]]> By: My Daily Dollars http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57180 My Daily Dollars Tue, 21 Oct 2008 17:14:40 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57180 Nice post! I agree. My "budget" might really just be a spending plan. I have categories, but for all non-fixed expenses, I borrow from one category or another. It allows some flexibility, but I still know on any given day how much money I have for the rest of the month. Nice post! I agree. My “budget” might really just be a spending plan. I have categories, but for all non-fixed expenses, I borrow from one category or another. It allows some flexibility, but I still know on any given day how much money I have for the rest of the month.

]]> By: Amber Jones http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57125 Amber Jones Tue, 21 Oct 2008 14:00:05 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57125 I operate similarly. I sit down with pen and paper in hand, and I start with a list of all of the bills, and what day they are due. Then I start at the top of the list, and work my way down. For example, this coming pay day, the 24th, I know that I will have $X amount of money coming into my bank account via direct deposit. So then I start at the top and work my way down. Basically, this one paycheck pays for Rent and Water. That's it. So I can mark that off of the list. I move on to the next payday, and do the same thing, marking off from top to bottom what I can pay, until I have little to no money left for that pay day. The upside to this is that I know I can pay my bills at least 2 weeks ahead of when they are even due. Sometimes I will get paid before they are even due. But each bill is basically the same every month. So if something isn't even showing up as needing to be paid, I set that money aside in my savings account, or wherever, and act as if it's not even there until the bill is able to be paid. I will do this for about 2 months ahead so I can get an idea of where things are heading. We are looking at saving for a car, and this helps us to see long-term, when we will have the money to do so. Also, when it comes to actually paying the bills, every Friday, I sit down and pay all the bills that I can. And then I write them down in the check register immediately. Shopping days come, and I need to groceries & other items. If I do shop, that evening, I sit down and write in my check register every receipt that I have from the day, in order that I did them, so I can make sure that I have every store. I also use Geezeo to help track expenses that I do not want to splurge too much on when there is extra money and we need clothing or shoes. I can set the spending target to be at $X and keep tabs on making sure that I don't spend over that in any given month. I can also set goals, such as the ones that I mentioned earlier of getting a new car. Then I can know what my progress has been. It works for us. :D I operate similarly. I sit down with pen and paper in hand, and I start with a list of all of the bills, and what day they are due. Then I start at the top of the list, and work my way down. For example, this coming pay day, the 24th, I know that I will have $X amount of money coming into my bank account via direct deposit.

So then I start at the top and work my way down. Basically, this one paycheck pays for Rent and Water. That’s it. So I can mark that off of the list. I move on to the next payday, and do the same thing, marking off from top to bottom what I can pay, until I have little to no money left for that pay day. The upside to this is that I know I can pay my bills at least 2 weeks ahead of when they are even due.

Sometimes I will get paid before they are even due. But each bill is basically the same every month. So if something isn’t even showing up as needing to be paid, I set that money aside in my savings account, or wherever, and act as if it’s not even there until the bill is able to be paid.

I will do this for about 2 months ahead so I can get an idea of where things are heading. We are looking at saving for a car, and this helps us to see long-term, when we will have the money to do so.

Also, when it comes to actually paying the bills, every Friday, I sit down and pay all the bills that I can. And then I write them down in the check register immediately.

Shopping days come, and I need to groceries & other items. If I do shop, that evening, I sit down and write in my check register every receipt that I have from the day, in order that I did them, so I can make sure that I have every store.

I also use Geezeo to help track expenses that I do not want to splurge too much on when there is extra money and we need clothing or shoes. I can set the spending target to be at $X and keep tabs on making sure that I don’t spend over that in any given month.

I can also set goals, such as the ones that I mentioned earlier of getting a new car. Then I can know what my progress has been.

It works for us. :D

]]> By: Stacey http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57112 Stacey Tue, 21 Oct 2008 13:05:42 +0000 http://www.paidtwice.com/2008/10/21/budgets-and-spending-plans-two-sides-of-the-same-coin/#comment-57112 The term "budget" has a very negative psychological effect! I agree that I like to pretend I have some control over our money, but at the same time realize that $x will go towards the mortgage, food and gas each month. A large chunk of each paycheck is already claimed. Our flexible spending plan comes in for clothing, eating out and other wants and semi-needs. Once that chunk of "spending" money is gone, it's gone. I've found that working out of one large, flexible lump of money works better than allocating small amounts for eating out, clothing and other variable expenses. It gives us a sense of control over the funds - if we want to eat out this week, no new shoes. It also means less work for me! I'm tracking one "expense" instead of five or more. The term “budget” has a very negative psychological effect! I agree that I like to pretend I have some control over our money, but at the same time realize that $x will go towards the mortgage, food and gas each month. A large chunk of each paycheck is already claimed.

Our flexible spending plan comes in for clothing, eating out and other wants and semi-needs. Once that chunk of “spending” money is gone, it’s gone.

I’ve found that working out of one large, flexible lump of money works better than allocating small amounts for eating out, clothing and other variable expenses. It gives us a sense of control over the funds – if we want to eat out this week, no new shoes. It also means less work for me! I’m tracking one “expense” instead of five or more.

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