Intentional Spending Plan: why this plan beats traditional budgeting

Today, I want to explore a topic that's been a game-changer for many of my clients – Intentional Spending.

Why is Intentional Spending a step ahead in a world swamped with budgeting apps and trackers? Let’s unpack this together.

Traditional budgeting typically involves tracking past expenses - asking, ‘Where did my money go last month?’

While this is useful, it's essentially reactive. Intentional Spending, on the other hand, is proactive. It’s about making choices aligning with your financial goals, priorities, and values.

The Intentional Spending Plan – A Forward-Looking Approach

Unlike many budgeting tools focusing only on expenses, the Intentional Spending Plan offers a holistic view of your financial picture. This includes your income, debts, investments, and savings goals – all in one place.

The Intentional Spending Plan is based on the 50/30/20 rule of budgeting, which suggests that you should allocate 50% of your income towards needs, 30% towards wants, and 20% towards savings and debt repayment. This approach allows you to prioritize your basic needs while still leaving room for the things you enjoy and the financial goals that are important to you.

Each section of the plan is designed to make you think about where your money is going and why. It encourages you to set specific, meaningful goals – saving for a dream vacation, investing in education, or building an emergency fund.

One of the biggest strengths of this plan is its adaptability. It recognizes that everyone's financial journey is unique and allows you to adjust categories and goals to fit your needs.

Why does an Intentional Spending Plan beat traditional budgeting apps?

Many budgeting apps can feel restrictive, like a list of don'ts. In contrast, Intentional Spending empowers you to make conscious decisions, turning budgeting into a positive and empowering experience.

With most apps, you're zooming in on the details. But are you stepping back and looking at the big picture? The Intentional Spending Plan ensures you do, helping you understand how each financial decision fits your broader life goals.

Life is unpredictable. A rigid app might not accommodate the twists and turns of life, but an Intentional Spending Plan is designed to evolve as your circumstances change.

Switching to an Intentional Spending Plan is more than just a budgeting change; it’s a mindset shift. It's about taking control, making mindful choices, and aligning your financial habits with your long-term vision.

I’m offering the Intentional Spending Plan as a free download, so you can try it yourself!