Woman with Coffee

Difference Between a Spending Plan & Budget

Last Thursday I presented a brand new workshop in Wichita, KS titled Your Spending Plan.

Attendees were asked to bring a list of their monthly and annual expenses as well as their income. During the course of the workshop, I showed them, like the title of the event states, how to create their own Spending Plan.

I also showed them how to:

  • Reduce expenses
  • Plug financial leaks
  • Streamline spending
  • Implement the Snowball Debt Repayment System

The event was very well received and I’ll be doing it again soon.

One of the questions I often get asked is what’s the difference between a Spending Plan and a Budget?

Technically, they’re the same thing. They both tell your money where to go instead of you wondering where your money went.

The reason I prefer to use the term Spending Plan is that for most people, the word “budget” has a negative connotation. It feels like punishment. Whereas the term “Spending Plan” brings to mind the idea of creating a plan for where you want to spend your money. A much more pleasant way to think about money.

Since my goal is to teach day-to-day money habits in a positive manner, I much prefer the term – Spending Plan.