2005 Spending Plan

I firmly believe that an annual spending plan makes a good companion to any budget.

By creating a list of things you know you'll need soon and having an idea of how much money you will need to save before purchasing them it's easier to avoid debt. Not only will you have the cash on hand, but it's easier to prioritize your "big ticket" spending and not go overboard.

Earlier in the year I created a 2005 spending plan on Tadalist (I have since moved it to Backpack so I can include more budget detail easily). I knew we'd be taking certain vacations, doing some home maintenance, and we desperately needed a new washer. Over time I fill in cost estimates as I do research and things become more clear.

This gives me a very high-level sense of an expense "category" that used to be hidden from my view until the credit card statement showed up. As things get closer in time, the detail gets filled in, and I can make sure I have the money ready or I wait until I do.

I spent some time on my plan tonight in preparation for a spendie fourth quarter. We have at least two trips coming up (possibly a third) and of course Christmas. I also moved items that we just couldn't afford this year into a new 2006 spending plan that is basically in skeleton form. I need to really start nailing down some budgets for our trips since I've let it go too long.

[UPDATE: I corrected the link to the spending plan, I had used the admin version of the link and not the public one. oops]