Spending Plans. Advanced Level 2.05. What is a Spending Plan?. An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time. A budget. Why is a Spending Plan an important part of financial planning?.
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An income and expense statement sometimes referred to as a budget which records both planned and actual income and expenses over a period of time
Help manage your money in a positive manner
Analyze the opportunity costs of your trade-offs to maximize financial well-being
Increase net worth
Helps set and reach goals
Statement of Financial Position
Income & Expense Statement
What is my future money management plan?
What is my financial position today?
How have I managed my
money in the past?
Determine what changes to make
May use the same template for both the Income and Expense Statement and the Spending Plan
Step 1 - Track Current Income and Expense
Step 5 - Evaluate and Make Adjustments
Develop the spending plan
Maintain the spending plan
Step 4 - Implement and Control
Step 2 - Personalize Your Spending Plan
Step 3 - Allocate Money to Each Category