How To Prioritise And Plan Your Spending: A Simple Spending Guide

Below is a simple seven-step spending guide that will help you to prioritise and plan your spending:

List your monthly income

The first step in planning and prioritising your spending is to list your income. Include your monthly salary and other income sources in this list. Whether it's the money earned from renting a spare apartment, working a part-time job or a side hustle you recently started, include it in a list and know exactly how you have to spend it.

Make a checklist of things you need to spend on

The second step to prioritising your spending is to make a concise list of items you need to spend on in that month or week. The list should cover everything you need to spend on, such as food, fees, rent, travel costs etc. Now, divide those spending into small categories, keeping the essential ones on the top.

Rent expenses, electricity and other bills, and bank loans should be top of the list. A checklist of things you need to spend on makes it easier to know what needs to be spent on what. It's an organised way of planning that avoids confusion during the process. 

Make bills, rent, and debt your priority

Now that you've categorised your spending in a list, make bills, rent, and debt your priority. Before spending anything else, first pay off electricity, gas, water bills, housing rent if you're renting an apartment, and any loan instalments due for that particular month. After you've done spending on bills, rent, and debt, you've covered the essential items on your spending list. Paying bills on time will help you to save fine on late payment.

Mobile phone and Wifi bills are also included among the priority bills, along with school and tuition fees.

Spending on household items

You have paid off the necessary monthly bills, and now you're left with a specific sum of money in your pocket. That means it's time to prioritise your spending. After housing and debts, the next thing to spend on is household essentials. Household essentials will include everything from food, milk, clothing etc. 

From laundry detergent to vegetables and salt, go to the market and carefully spend your money while buying these essential household items. Try to look for deals, discounts, and sales to spend less and buy more. While shopping for food, remember not to spend on deals you cannot afford or items that do not come to use in daily life.

Spending on your health

Your essential bills and rent are paid, and you've bought all your household and grocery items. The next thing that you need to spend on is your health. Health is one of the most important things to invest in. Take time to care for yourself and spend on gym memberships or yoga classes if you're a yoga fanatic. 

Hobbies and treats

So, you have followed your spending plan and still have some money left? It is time to reward yourself and spend on your hobbies and treats.

Go to a bookstore or spend on craft materials or whatever you like. Buy your favourite snacks, your family's favourite food, or candy for your child. Remember, spending on hobbies and treats is a good habit but do not indulge in binge shopping or unnecessary expenditures. Spending on hobbies and treats should be last on your spending plan checklist. 

Some might think that spending on hobbies and treats is unnecessary and unimportant, but it's essential to treat yourself better and spend on some things that make you feel happy.

Track what you spend on

The last step in this simple spending guide is tracking your spending. Having a track of your spending helps you to know what you spent on or how much you spent. It's a good habit to know what you spend on as it prepares you to systematically sort out your household's monthly spending.

When you know where to spend and how to spend, you can prevent the possibility of spending extra and worrying about other expenses.

A strategy to plan and prioritise your spending is a great way to manage the overall expenses that you need to spend. The above mentioned seven-step spending guide aids you in the process of planning and prioritising. You can customise and modify the spending guide according to your priorities and create your spending plan.

It's never too late to start planning and prioritising, so why not start today?

Why should you prioritise and plan your spending?

You might be wondering why you should prioritise your spending. Is there a need to plan your spending? What is the benefit of knowing where and what to spend? Here's the answer to all your questions:

• Prioritising and planning your spending prevents you from overspending.
• If you plan your monthly spending, you can easily manage your household while ensuring that all important bills are paid on time.
• It helps you to manage your spending and household expenses within your monthly income limit.
• Prioritising and planning your spending prevents you from stress and worry.
• A spending guide lets you know where and what to spend on, allowing you to track and effectively spend your money in the best way possible.
• It also ensures you don't run out of money and have nothing to spend on your everyday goods.