Instead of forcing you to track every penny or give up small pleasures, i Conscious Spending Plan (CSP) perfect for those looking for a simple, stress-free way to manage their money.
If your income adequately covers your essentials and you don’t struggle with overspending or debt, there is no need to worry about a tight budget and you can use CSP. With CSP, you will focus on four key areas of greatest importance: Fixed Costs, Investments, Savings, and Innocent Spending. By prioritizing these buckets, you create a financial framework that allows you to enjoy life while remaining financially responsible.
Fixed Costs it should take 50-60% of your take home pay. This category includes essentials such as rent or mortgage payments, utilities, groceries, and small debt payments. It is the foundation of your financial life, ensuring that your basic needs are met.
Investment it should indicate 10% of your take-home pay. This money goes toward building your future wealth through tax-advantaged retirement accounts, low-cost index funds, or other long-term growth vehicles. The goal is to let compound interest work its magic over time.
To savewhich should cover 5-10% of your take home pay, is your safety net. This includes building an emergency fund for unexpected expenses and saving for planned goals such as vacations, down payments, or weddings. It’s about preparing for both the predictable and the unexpected.
Finally, Innocent Waste it lets you enjoy 20-35% of your take-home pay on whatever brings you joy. This could be eating out, shopping, or recreation. The beauty of this section is that you can spend freely without feeling guilty because you have taken care of important financial matters.