For ‘desirable’, we’re talking about the larger ‘things’ and experiences that we plan for, like an overseas holiday, a new car, a new house or home renovations. Major financial goals you need to plan ahead for so you can get your finances ready in advance.

And for the undesirable, we’re talking about the things and experiences we do not plan for that we wish never happened. Things like major dental expenses, major car repairs, a hip replacement, a legal battle, a funeral, uninsured flood damage and so on.

I have a saying that goes like this; “Take control of what is controllable and the uncontrollable will be much less likely to take control of you!

If you follow my suggestions for planning ahead for the first 5 Expense types we’ve just finished looking at, that will place you in a great position to set bigger life goals for the desirable ‘Once in a Lifetime’ expenses and to be able to deal with the major undesirable ‘Once in a lifetime’ expenses.

Let’s look at this a little more closely. If you currently live from pay to pay and you constantly stumble from one money challenge to the next, and you’ve got that knot in your stomach most of the time, there is no way you are ever going to be able to set a major financial goal and achieve it. You won’t even have the belief that you could ever be so lucky as to be able to go on a holiday or buy a new car or house, or whatever it is you would like to do.

BUT, if you were to let go of the fear of facing up to your finances and you took one simple positive step to create a Spending Plan for your income, it will amaze you just how quickly you see positive results and the knot in your stomach is replaced by the smile on your face!

I said at the start of this little mini-series on the six types of expenses that the characteristics of the different expense types allow you to get in control of them. They all need to be planned for differently.

Number 1 Weekly Living Expenses are easy to take control of because they are predictable. Use a separate account to stop the accidental spending of more than you allocated. Number 2, Bills are easy to plan for because of their predictability.

Regular predictable expenses are easy to plan ahead for because you know when they fall due, how often they occur, and how much they usually cost. Keep that money separate and your bills will be easy to pay, just follow the plan; you’re controlling the controllable. Weekly living expenses can be controlled by separating the money you allocate for that from all of your other money so you can’t accidentally overspend and mess things up.

Unconsciously frittering away an extra $20 a week does not sound like much, but that’s $1,000 a year if you let it happen week in week out! However, if your weekly allowance for living expenses is kept in a separate account and it runs out, you have to stop spending, and the $20 does not get frittered away! Now your annual holiday IS starting to look possible after all!

Long term replacement and maintenance of things can be planned in advance reasonably accurately and once again that money could be kept separately out of danger of accidentally being spent on stuff!

That gives you the ability to start trickling regular amounts into a Life Happens account for unexpected things and a goals account for the big desirable things. Small regular amounts put aside over time allow you to achieve your big once in a lifetime goals, but that same money could have been frittered away every week leaving you with nothing to show for it.

There is a vast chasm between an overseas holiday and a cupboard full of junk that no longer works or is no longer desirable.

A Spending Plan is THE easiest way to make all that happen. Talk to a Spending Planner to find out how easy and inexpensive it can be to get started!