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Plan Ahead Method™

Did you know the traditional way of budgeting oftentimes fails. Why? The way a regular budget is written is: You list your entire income for the month, subtract all your expenses and boom, your done. Let’s be real, life doesn’t happen that way. You don’t get paid your entire month’s salary on the 1st, then immediately pay all of your expenses that same day. In reality you generally get paid at least twice a month, and life, bills, and expenses happen throughout the entire month. 

​So what is the best way to create your money plan? Using the Plan Ahead Method™!

List Your Expenses 

List all of your expenses (regular & non-regular) for the month.

  • Regular – These occur every month: ex. mortgage, car payments, utilities, debt minimum payments, etc.
    List the bill name, amount due, and the due date. Some bills that may vary, like a utility bill, list your highest amount.    
    Better to overestimate than not be prepared!
  • Non-regular – These don’t occur every month: ex. car registration, car maintenance, clothing, travel expenses, gifts, etc.
    Calculate what you spend on these in a year*, then divide each one by 12. That’s your monthly estimate for each category.
Create A Spreadsheet

I recommend a spreadsheet in a google drive or on excel file. This is easy for couples as this can be shared and help keep you both on the same page.

Create Your Money Plan

With your tool ready, complete these steps:

  1. Start off by listing your current bank balance.
  2. Next list all of your income for that paycheck period (paychecks, interest, commissions, etc.)
  3. Organize all of your regular bills for that paycheck period, in order of their due date.
  4. Now list all of your day-to-day* expenses (groceries, eating out, coffee runs, gasoline, etc.) for that paycheck period. These are not fixed amounts & do not have set due dates. 
  5. Your last expenses will be your non-regular expenses. You can choose if you want to save for these with your first paycheck period of the month, or wait until your last paycheck period of the month.
  6. Once you have added up all of your income and subtracted all of your expenses for that paycheck, you will arrive at your balance. This will show you what you have left over until your next paycheck.
  7. After planning ahead for several weeks, you will have a clear picture of how much “extra money” you really have. This can be used towards paying off debt, building up your savings, or any other goal you may have.

*Not sure on what you spend on these categories? Try looking at a recent credit card statement or by reviewing your bank activity.

​Repeat the above steps for your next paycheck in a new column. Just remember the starting balance of the new column won’t have your current bank balance, it will have your ending balance you carried over.

How To Make It A Success
  • Tired of having 20 different transactions throughout the month for day-to-day expenses? Try taking out a set amount of cash, once per pay period, for all of your day-to-day expenses. This makes those 20 different transactions, one single transaction.
  • Have several goals that you want to focus on with that extra cash? Awesome, I want you to crush them! How? By focusing on one goal at a time. This will help you make faster progress, which will in turn motivate you to stick to your plan!
  • Create your money plan early for your next paycheck. Eventually I want you comfortable planning out a few months ahead. This will really give you clarity as to how you are doing with your finances not just now, but also in the future!

This is how you can create your money plan. A plan that is personalized for your life based on what is important to you. This will help you see your finances clearly.

I’ve discovered that creating this is CRUCIAL to a person’s success. Those who design this get results faster!! It’s hugely important!! If you need help creating this AND learning how to properly use it, do not hesitate to schedule your complimentary On Track Call!