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.