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How to Create a Spending Plan

October 13, 2014


Wow! So it is exactly less than 100 days before 2015!!!!!!!!!!!!!!!!!!!!!!!! Parang kailan lang yung first post ko na Starting from the Start. I hope your doing great everyone and hopefully gaya ko you are excited too for new year!


Today’s post is about Creating Spending Plan and it will be nice that before 2014 ends you know exactly how to this basic financial tool. Creating a spending plan is important if you want to determine where your money goes. Even if you don’t set a budget as long as you can easily track down your spendings it will be easier for you to manage your finances.

Things You Need

Depending on your preference you may use a notebook or a digital app for this.

For notebooks you may opt for a spiral one so its easier and more convenient to turn. Also you may want to use color-coded pens so that every expenses will be organized. A bookmark can also mean a lot for you to know easily what page you are about to write.


For digital apps there are tons available so use whatever suits your need. For now I am using Google Spreadsheet for my Spending Plan. I’ll share more of this soon. It is still new for me because before I am using a notebook. 🙂


Step by Step Spending Plan 101


Step 1. Have a definite system. It is important to use a system that will work for you. Just as mentioned above, determine whether you want to write through pen and paper your spendings or just type via phone/tablet maybe.


Step 2. Have a Baseline. This is why it is highly recommend that you know your financial net worth first because this will act as your baseline. When you know how much you’re worth financially it will be easier to create financial decisions


Step 3. Have Themes or Categories. What are your spending categories? Most common type of financial themes will be:
  • Rent
  • Transportation
  • Food
  • Savings
  • Tithe
  • Personals


Step 4. Have spending percentage for each categories. Just like my 50-20-30 Rule , it is important that you calculate  a percentage of your earnings to each and every spending categories. In my post I offered 50% for Essentials (rent, transpo, food), 20% for Financial Goals (savings, insurance, investments) and 30% for Personal needs (hobbies and recreation) less Tithes.


Step 5. Have a Daily/Weekly Review of your baseline. Now that you have successfully created how much you’ll be spending for the what’s’ in your life it is now time to review. Go back to your baseline or your financial net worth and find out if your current spending plan is working towards your benefit or not. If something is wrong or if nothing happens then learn to adjust.


Step 6. Have priorities set in your financial life. It is crucial that you become aware on what’s important in your financial life. List down the non-negotiable amount you should pay like rent, transpo, food and credit card debts. This will help you remember that you have to hustle your way to pay the said fees. Clear your priorities in life now if you don’t want to be sorry later.


Everyone should learn how to make a spending plan specially if you are currently earning your own money. This will help you big time in keeping your future align with your goals. I do try to be very consistent with my spending plan specially because Christmas is coming and as we know a lot of financial responsibilities come in Christmas season! (Apir sa mga Ninong at Ninang diyan!)


Thank you for reading for my blog!

Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph

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