5 Healthy Emotional Benefits of Creating A Spending Plan

The harsh reality is that most of us weren't lucky enough to be blessed with parents who talked openly about finances in the home and ensured that we were equipped with the foundational education needed to know how money works and build wealth. The reasons may vary, and this oversight, in most cases, occurs because they never had this conversation with their families growing up. While we may brush this off as adults, the discussion around the money mindset is more significant than we realize; it has layers of emotions surrounding it. And as adults, we have to dig deeper!

As a certified financial planner who has experienced this misfortune and the lack of education on money matters, I am writing this post to share this emotional journey and connect with you regarding your challenges in maintaining and managing your finances. Maybe you were like me, grew up dirt poor, or experienced financial challenges mixed with loads of debt in your marriage (yes, we've been there too). I'm here to tell you that you're not alone in your path; there is a way through.

For us, the prescriptive solution was, "Jose and Jasmin, you need a budget".  

And if you are like most people, you probably already know that part. You may even already have a budget. But you may also think, "I have a working budget, but it's just not working". At Accountable, we have the tools and the systems to help you with the quantitative nerdy numbers, so you can focus on building the life you want. We call it the 15-Minute Spending Plan. And we also have experienced coaches who will hold you accountable and help you reach your goals in a way that aligns with your values, motivators, and lifestyle.

However, most financial professional blogs about budgeting do not address the human side of the equation. Creating a solid Spending Plan that works for you has tons of positive emotional benefits.   

5 Ways That Creating A Budget Can Help Your Heart Along with Your Finances 

• Sidestep the stress!  

Picture this: You're finally on that long-overdue vacation you've wanted to take yourself on for years. Exciting, right? Now think about being on the beach, trying to live your best life and feeling optimistic about your future. You created a spending plan that included this vacation, so it's paid in full. For once, you're not thinking about putting your enjoyment on the back burner or thinking about the negative consequences you will have to face due to this indulgence. You realize that planning works! And you enjoy your vacation with pride, dignity, and genuine gratitude for your life!

• Give Yourself a Confidence Boost

Because you’ll always account for basic needs in your budget first, you’ll never have to worry about your necessities! And your varying needs will be funded and accounted for. The confidence that you can progress in a structured way is hugely empowering!  

• Take Care of You, For A Change

As a parent of twins, I know that finding time and money for self-care is extra challenging. When I was single, I never budgeted for self-care. And now, when I look back, most of my funds went to self-care and enjoyment. 

As a parent, I had to unlearn that behavior and shift my focus to necessities. Somedays, I force myself to go to the Jewish Community Center and use my membership for a quick workout. I am a better, healthier, happier, less stressed member of my family when I take this “me time” at 5 AM. The positive benefit to having self-care in your budget is that it allows and enables us to spend money on ourselves for personal care, which many of us would otherwise avoid for the sake of saving money.

• It Gives You a Goal to Work Towards

When I was teaching personal finance to infantry soldiers, I would ask, “What are you aiming for?” or “What is your financial target?”  Because as a young service member, I did not get any training on reading and understanding my pay statement or how to spend it. That’s true for many of us who haven’t had an opportunity to sit down and map out our financial goals.

Today, some programs support our service members and the public, suggesting saving a percentage of every check or not overspending on the financial pillars of your spending plan. Healthy, positive goals allow you to be emotionally committed and give you a dream to work steadily towards, which keeps you motivated and alert.

• It Lends Your Life Meaning

When you follow the principles of your budget, you are often challenged to make the most positive impactful choice for your family. If you are saying yes to a new meaningful purchase, you will have to adjust your spending plan, which results in saying NO to a previous commitment.  You must choose wisely, with purpose and intent. And this really pushes you to have deeper conversations with yourself, your partner, and your family about what really matters to you, and what you value the most.

With a focus on the positive emotional benefits of creating and having a spending plan, I hope you are more emotionally committed to improving your personal and financial well-being. While “budget” and “spending plan” have been used interchangeably in this post, what I want for you is to focus on creating a Spending Plan. The act of ownership tells me that you are emotionally tied to the positive benefits listed above and those that are uniquely personal to your financial journey.

Additionally, tracking your expenses can help you feel in control and reduce stress. Learn the Best Ways to Track Your Expenses!

So, how do you move forward?

Get in touch with an Accountable-accredited Financial Accountability Coach through our FREE 30-Minute Coach Match session for tools, resources, and accountability that can help you enjoy that next vacation with less stress and more ease, because you created a spending plan that honors both your wants and your needs!

This is a simple no-obligation call that’ll help you get a better idea of whether coaching is something you need. And if you do choose to move ahead, this call will help us connect you with an Accountable-accredited coach who would fit your business’ needs and ambitions the best! 

Click here to book your call!

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About the Author

Jose V. Sanchez, CFP® is the founder of Retirement Wealth Guidance LLC and an advocate for families affected by Alzheimer's. As a Fee-Only CERTIFIED FINANCIAL PLANNER™ professional, Jose specializes in co-creating financial plans, providing financial education, and conducting research to help the families he serves make informed choices.

Jose grew up in G-town (better known as the village of Glorieta, NM), a village that was poor monetarily, but was rich in traditions, family, and community. At an early age, he developed a passion for service, community involvement, and a deep appreciation for the elderly, inspired by his parents and resilient neighbors.

After serving in the military for five years, Jose returned to New Mexico to complete his education at the University of New Mexico. He has since dedicated 18 years to serving through financial coaching and education.

When not working, Jose can be found biking in the Albuquerque foothills or having fun in the sun with his wife and three children. You can also find him on the BadAss Retirement Podcast.

Jose's unique background and perspective allow him to serve his clients in a compassionate, holistic manner that is rooted in a deep understanding of the challenges faced by families dealing with Alzheimer's and other cognitive diseases. With his expertise and commitment to education, he helps his clients make informed decisions to achieve their financial goals and secure their financial future.