There is a subtle difference between a budget and a spending plan. A spending plan is couched in empowering language and encourages thoughtful financial decisions.

You might think of a ‘spending plan’ as a roadmap for how you’ll spend your money, rather than a list of ‘don’ts’ that restrict your spending — even if the end result is essentially the same.

Budgeting implies sacrifice and limitations, penny pinching and deprivation. A spending plan is more about a way to direct your financial resources. Rather than looking at where you have to cut back, as you would with a budget, you consider how to spend your money to live your life goals.

(It is worthwhile to learn more about how to create and implement a spending plan.)