Cash planning helps you evaluate not only your monthly expenses (often evaluated in budgeting), but also helps encourage you to start saving for irregular expenses and long-term goals. This will allow you to more confidently INVEST MORE.


Some budgeting software includes cash planning (like YNAB). Some budgeting software only track expenses, but doesn’t look towards large upcoming expenses, such as a new car or home renovation. That’s where CASH PLANNING comes in.

Choose a CASH PLANNING METHOD to SAVE for large expenses (e.g. cars, home renovations, vacations, etc.)

Choosing a Cash Planning method is part of the step-by-step Money Fit Challenge. This step seems basic, but considering the average American’s savings rate, learning to save up for large items rather than financing with debt is critically needed.

Improve your BUDGETING & INVESTING! Join the FREE #MoneyFitChallenge

If you learn best with comedy, you might like this SNL skit — a favorite of financial professionals. If you’re in debt, it might sting, so proceed with caution ⚠️. Takeaway: DON’T BUY THINGS until you’ve SAVED for them.

“Too many people buy things they DON’T NEED, with money they DON’T HAVE, trying to impress people they DON’T EVEN LIKE.” 

– Quote said by Suze Orman and, according to Google, Will Smith?

πŸ“ˆ (BONUS!) CASH PLANNING helps you INVEST MORE! #1 MISSED OPPORTUNITY for people “doing fine” financially 

Allocating your cash to . . .

  • Recurring monthly expenses (housing, food, utilities, etc.)
  • Irregular Expenses (e.g. biannual insurance payments, property and income taxes, travel, holiday shopping, etc.)
  • Emergency Fund (3-6 months of saved expenses)
  • Upcoming large expenses (cars, electronics, vacations, home renovations, vacations, etc.)

. . . AVOIDS DEBT, but also helps you CONFIDENTLY INVEST MORECash LOSES value over time (inflation) while the stock market goes UP an average of 4 out of 5 years. πŸ“ˆ

After brainstorming your large expenses for the next 5 years (with a full emergency fund to cover unexpected expenses), consider INVESTING your remaining cash. 

Does this mean you need enough cash to cover 5 YEARS worth of expenses before investing? No! Your emergency fund is usually only ~3-6 months of expenses. The majority of future regular expenses should be covered with your future regular income.

⚠️ Rule of thumb: Don’t invest cash you need in the next 5 years (due to volatility). After that 5+ year time horizon,you will usually be MUCH better off INVESTING that cash. 

Still want to learn the how/why/what/where of SIMPLE, EFFECTIVE INVESTING? πŸ“ˆ

Read THIS book (also available on Audible) Over 5,000+ β­β­β­β­β­ 5-STAR reviews on Amazon


METHOD 1: Use YNAB (My fav paid budgeting software) or a Cash Planning Spreadsheet (Create your own, Google for one, or use mine). 

Can you use another budgeting software? For tracking your expenses, definitely. But for cash planning, absolutely NOTHING works as well as YNAB. Trust me, I’ve tried. 34 day trial available.

METHOD 2: Open separate bank account(s) for large savings goals.

METHOD 3: Create your own method! Honestly, it’s not rocket science. Do what works for you and feel great about it. πŸ™Œ As long and you’re using SAVING rather than using DEBT and INVESTING CONFIDENTLY!

Choose your next MAJOR SAVINGS GOAL. Start saving for it using your chosen CASH-PLANNING METHOD.

Now that you’re . . . 

Start SAVING for your next large purchase, rather than financing with debt (or dipping into your emergency fund).

πŸŽ“ Considering SAVING FOR COLLEGE? We cover that separately in another step of the Money Fit Challenge!

πŸŽ‰ GIVEAWAY! (Money Fit Challenge)

COMPLETE A CHALLENGE + SHARE (How to Enter) + Increase financial literacy. 

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