We’re halfway through the year — do you know where your money is going?
If you’ve been feeling a little financially scattered, now is the perfect time to pause, regroup, and make a money game plan that actually works.
The way I plan my finances isn’t complicated — but it is intentional. And guess what? It can work for you too, whether you're on a fixed income, trying to pay off debt, or preparing for upcoming holidays and vacations.
Let me walk you through how I plan out my money step-by-step, and how this simple but powerful strategy keeps my household on track.
🧠 Step 1: Start with Your Worst-Case Income
I always begin by estimating the lowest amount of money I expect to bring in each month — not the best-case, but the worst-case.
Why? Because I’d rather be pleasantly surprised than financially stressed. If we make more than expected, it’s a bonus. If not, we already built the plan around the minimum.
👉 Tip: This is especially helpful if you or your partner have variable income or side hustles.
💸 Step 2: List All Bills, Expenses & Necessities
Next, I calculate all our monthly fixed and variable expenses:
-
Rent/mortgage
-
Utilities
-
Groceries
-
Gas
-
Insurance
-
Subscriptions
-
Debt payments (like student loans)
This gives me a realistic baseline for what we must spend. Everything else can be adjusted.
🎄 Step 3: Forecast Holidays, Events, & Life Goals
Here’s where a lot of people get tripped up: forgetting the future.
But I plan ahead by estimating what we’ll spend for:
-
🎂 Birthdays
-
🎄 Christmas & holiday gifts
-
✈️ Vacations
-
🎓 Back to school
-
🏡 House savings
-
🎓 Student loan payments
-
🪙 Roth IRA & investment contributions
I list each category with an estimated dollar amount and break that down monthly. That way, I’m not scrambling when those things roll around.
📊 Step 4: See What You’re Working With
Once all the needs and goals are laid out, I take a look at what we have left over. This lets me:
-
Identify any shortfalls
-
Adjust holiday spending if needed
-
Plan for fun money, eating out, or extras
-
Decide how much can go toward sinking funds or savings goals
This bird’s-eye view gives us a clear picture of where to cut back or where we can be flexible.
💼 Step 5: Adjust for Real Life
If we don’t have enough to cover everything?
Then it’s time to get creative:
-
Side hustle (yes, I’ve done DoorDash and more!)
-
Work overtime
-
Sell unused stuff around the house
-
Shift timelines on non-essential goals
It’s not always easy, but this approach helps us make informed decisions instead of emotional ones.
⏰ Why Mid-Year Is the Perfect Time to Do This
The year flies by fast — and now that we’re halfway through, it’s a great checkpoint.
Ask yourself:
-
Have I hit my savings or debt goals?
-
Am I financially prepared for the holidays?
-
Is it time to increase income or cut back?
You don’t have to wait until January. You can reboot your money strategy right now.
💡 Final Thoughts: Planning Ahead = Spending Smarter
This process isn’t about perfection. It’s about clarity and control. When you plan ahead, you spend with intention, not just impulse.
The goal isn’t just to make more — it’s to use what you have wisely. And planning ahead is one of the best ways to make your money stretch and support your goals.