Before we get started, if you missed the first five instalments, you can see them here:
1: Weekly Expenses
2: Non-Weekly Repeating Predictable Expenses
3: Product Purchases
4: Repairing Things
5: Replacing Things
Here is the final expense type: 6. Major ‘Once In A Lifetime' Occurrences. These fall into two groups:
1. Larger Life Goals
These are the big events that make life worth living. You want them to happen and you have a clear time frame in mind. They include:
Even though these are the most important things most of us will ever do, it's easy to miss out. It takes focus and time to save up, and if you don't manage money on a week-by-week basis, you'll never afford those once-in-a-lifetime treats. This is where having a Spending Plan and a Spending Planner on your team makes so much difference. You get to choose the life you want, and then you create the plan to make it happen and work as a team to get there!
2. Unpredictable larger expenses
Next to big plans and lifelong dreams, we have unpredictable one-off expenses. These are slightly less fun, but even more crucial.
These are things we'll all have to face, but many of us fail to prepare for because they don't fit into our daily budget well. Having a contingency plan makes these unexpected events much easier to handle.
Best of all, if the unexpected event never occurs, your contingency money can simply flow into another part of your overall plan. It's a win-win.
How To Succeed With 'Type 6' Expenses
1. For your larger life goals, here's what I recommend:
2. For the unpredictable life events (that may never happen but you want to have an emergency fund in place just in case), you should simply save an amount from each pay packet to build up your chosen slush fund target.
Don't Be Smart, Be Wise
When it comes to managing spending for big events (or anything, in fact) — it's better to be wise than smart.
While ‘smart' is about knowing lots of facts, ‘wise' is about applying that knowledge and predicting what will happen before it happens.
To me, that's what money management is all about. Understanding the 6 different expense types we've talked about will help you to develop financial wisdom, recognise each expense type for what it is, and prepare for each of them before they arrive.
Taking control of all six is liberating — and will set you on the path to financial freedom and comfort.Success With Money
Take Control of Your Finances
If you can take control of your spending by making some of the little changes above, you'll put some breathing space between you and your money stress, allowing you to relax and start building a stable financial future for your family. If you just can't get your head around that and/or you are tired of money stress and have decided it's time to take control, talk to a Spending Planner to find out how you can break the cycle. BOOK A FREE CALL
You have nothing to lose and lots to gain. Spending Planners are non-judgmental professionals who are trained to help. A short relationship with a Spending Planner will provide you with tools and training that will benefit you for the rest of your life!
To find out more about becoming a Spending Planner, CLICK HERE
Creating your own personal Spending Plan will be one of the best things you ever did.