Mindful spending is all about being intentional with our spending decisions and an Autopilot system helps to reinforce this positive money habit. 

Budget - A tiny word that’s worth 10 points in Scrabble.  An estimate of income and expenditure for a set period of time, says the Oxford Dictionary.  For many it triggers alarm bells of restriction doom and gloom and lots of spreadsheets.  I prefer to think of it as a mindful spending plan, where I’m simply mapping out my spending choices upfront.  This covers both our necessities, as well as intentionally allocating money towards things that really make us happy.  That is right, we plan to mindfully spend on the fun stuff!  

Your money autopilot helps to keep you on track, but your mindful spending plan is how you decide what being on track looks like.  Whether it is detailed or minimalist is neither here nor there. The point is it has to work for you.  Whatever yours looks like, here are some important things to consider: 

• Know your income - salary from your job, any government payments and/or money from side hustles, 

• Work out your needs – the essential things you need to spend to live 

• Work out your wants – the things you don’t need but make life enjoyable 

• Ensure you make some room to save – pay your future self first! 

 A thought on needs and wants – how do you tell them apart?  Here’s a good example – I need shoes to go to work.  Shoes are a Need, but that pair of $300 heels that I’m lusting after, is more of a Want.  

Let’s look at how to come up with your mindful spending plan.