Money Rule # 3: Planning Before Spending

by RobSake on July 27, 2012

During the first two weeks we have already discuss some of the most important money rules for us to follow. Money Rule #1 teaches us to spend less that what we earn while Money Rules #2 teaches us importance of time in our money making endeavors. Right now we will discuss the value of planning in our spending habits.

Planning carefully with what you are spending will surely put you in the right tract and will eliminate the common problems with regards to impulse buying. There are people who thought that life will be boring if you have planned ahead with what you want to purchase for it will eliminate spontaneity in life but that is not the case when you are getting used to the situation.

Money Rule # 3

The principle of planning before you spend something is easy to apply only for those big purchase especially when planning to buy a house or a car and spend a vacation so planning is needed. In this kind of situation it is easy to apply the planning stage but in simple tasks, planning ahead before spending is harder to implement.

In some purchases their are instances that we become a victim of impulse buying like for example, in buying a gadget such as cellphone which is considered as a small purchase for some who can afford, planning is helpful. Planning in buying a cell phone will definitely beneficial to you as a purchaser. Don’t be a compulsive buyer when buying gadgets.

You can use your extra time such as a fifteen minutes of online research that can save you hundreds a year. Other hot items that needs planning is when buying Christmas gifts that are often bought in minimal time, even though you can often find better gifts for the same price or better deals on the gifts you bought with just a bit of footwork and planning.

Bigger purchases needs a lot of planning, for purchases more than $100 or more, just spend five minutes making sure you’re getting a good deal and that you can adequately and easily afford the item. You can use the thirty day rule in this kind of purchase if you are convinced. The thirty day rule is a technique used by some of the budget planners. You put a particular purchase on hold for thirty days. If you still want it after thirty days and you can afford it, go for it.

Impulse buying will definitely hurt our spending habits without planning. Some of the impulse buying that we should be careful with are dinner at a restaurant, downloading new songs from iTunes, buying a new pair of pants and sometimes a ticket to a sporting event. This are quite often bought quickly with almost no forethought. The activities provide us fun but this could results to shortage in our budget.

We enjoy our life most with variety and spontaneity which were spices in life but it’s foolish to let those spices cost you more than they should.

The best way during spontaneous moments is to plan ahead, you can provide or allocate at least $100 in cash in your wallet and let that be your “spontaneous” money for the month. You can do whatever you want with it and it’s fine because you planned for that amount. An impromptu moment doesn’t mean that you’re going to be late on a bill at all.

In money rules number 3 which involved planning before spending, the key her is that every action you take is worthy of a bit of thought, either beforehand, in the moment, or afterwards. A bit of reflection often tells you whether that choice was right or wrong for you. Take it seriously and think for yourself whether it actually adds value to your life.

After seeing the value of planning before spending, take the conscious steps to reduce those things that don’t add much value into your life and it will become easy, you just eliminate the negative and by default the positive in your life is accentuated.

For some people,they thought that a simple budget can be incredibly useful but budgeting is not enough, you need to employ  just a bit of planning ahead which can make the big difference that you need.

How about you how did you spend? What are the different planning techniques you employ before you spend, let’s discuss your ideas in the space provided below.


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