How many times have you looked at your financial decisions only in hindsight? People often relate to their money that way – only examining their spending once the money’s been spent. While reflection is all well and good, planning ahead can make a big difference.

This month, we’re talking about creating a proactive plan for your spending and income. This plan is meant to orient you towards the future. Making decisions about where your money will go in the time ahead can be impactful for several reasons. Let’s talk about why this technique is so key to financial success!

Avoid Missteps Before They Happen

Sometimes we look over the money we spent in the past month, or check in with our income, and realize we made a couple missteps. We might have been living above our means, or spent a lot of money on something that didn’t really matter to us. These things might prevent us from having the finances and life that we want to have.

For example, unintentionally spending big in one place might result in us not being able to pay down a debt later in the month. Or, we might be unable to get a friend a birthday present. We might have overestimated our income for the month and find ourselves with less than we need.

Planning ahead and sticking to our spending and income plans can help us avoid these situations.

Anticipate Big Expenses

Rather than checking in on your money only when you fall short or have a big expense, planning ahead can help prevent this situation entirely. Here’s a great quote from my mentor Karen McCall, founder of MoneyGrit. (R):

While driving, no one would keep her eyes only on the rearview mirror, never looking through the windshield at the road ahead. To be fully mindful about your money, you have to look forward too.

When you have a spending plan in place, you’re able to relate to large upcoming expenses as things to plan for, rather than things to freak out about. This is a game changer and can help you think about the rest of your spending and income, and how it will be affected by the expense or situation.

Less Stress & More Intention

At the end of the day, creating a spending and income plan is really about is being good to yourself. The more you can make relaxed, proactive decisions about money, the more you can eliminate financial stress from your life. When you create a plan for your spending and income that’s based on creating a life you love, that money and how you spend it become more fulfilling for you.

Planning ahead can create financial stability, and it can also create greater life satisfaction. Isn’t that really what financial success looks like for most of us?

If you enjoyed this article, you’d probably enjoy my free e-Book, 9 Secrets to Financial Self Care. Click below to download your free copy!