How to Create a Spending Plan That Actually Works (and Why It’s Not a ‘Budget’)

Let’s be honest: the word “budget” can make you clench up. It often brings to mind restriction, sacrifice, and a long list of things you can’t have. But what if managing your money wasn’t about limitation, but about intention? On Beyond The Grind, we’re all about reframing our mindsets for growth, and that includes our finances.

In our conversation, we broke down why you should ditch the dreaded budget and instead learn how to create a spending plan. It’s a simple but powerful shift that’s less about cutting back and more about taking control. It’s about giving every dollar a job so you can build the life and business you’re working so hard for.

It’s Not Restriction, It’s Intention

The biggest problem with traditional budgeting is that it feels like a punishment. As Tosin pointed out, a spending plan is different. It’s not about what you have to give up; it’s about consciously deciding where you want your money to go.

"It's not about restriction. Yeah, it's about being intentional about knowing where your money is going, right? It's about planning where you're going to spend it." — Tosin

Many of us, especially early-stage entrepreneurs, fall into the trap of “bank account budgeting.” If there’s money in the account, we’re good. If it’s low, we panic. This reactive approach creates a constant cycle of stress and makes it impossible to plan for the future. A spending plan gives you a bird’s-eye view of your financial habits, allowing you to move from reacting to your bank balance to proactively directing your funds.

A Simple Framework: Needs, Goals, and Wants

So, how do you actually build a spending plan? Tosin shared a brilliant and straightforward framework that works for both your personal life and your business: categorize every expense as a Need, a Goal, or a Want.

• Needs are your absolute non-negotiables—the things you must pay to keep your life running. This includes your rent or mortgage, utilities, essential groceries, and transportation. These are the bills that keep the lights on and a roof over your head.

• Goals are the expenses that move you toward your future. This is where you pay yourself first. This category includes paying off credit card debt, saving for a down payment, and investing in your retirement accounts. It’s the money you’re putting to work for Future You.

• Wants are everything else. This is the fun stuff—dining out, vacations, entertainment, and that monthly massage Korede’s wife considers a "need" (a hilarious point of debate in our episode). While these expenses bring joy, they are the most flexible part of your spending plan.

There are no universal right answers here. The beauty of this framework is its flexibility. One person’s want might be another’s need. The key is to be honest with yourself about your priorities. Allen also shared a pro-tip: make your savings a non-negotiable. By setting up automatic transfers to your savings and investment accounts, that money never even hits your primary checking account. You learn to live on the rest.

"So if you make 5k a month, you really make 4k a month because 1k is already out there. You don't even, it doesn't even touch the same bank account." — Allen

Putting Your Spending Plan Into Practice

Creating the plan is the first step; sticking to it is where the magic happens. Here are a few practical tips from our conversation for different scenarios:

For Individuals: It can be hard to see your own financial blind spots. Tosin suggests working with a financial expert or even a trusted, unbiased friend who can keep you accountable and call you out when your “wants” start masquerading as “needs.”

For Couples: Money is a notorious source of conflict. To get on the same page, try writing out your individual spending plans first and then coming together to compare. A popular method is to have a joint account for shared "needs" (like the mortgage and bills) that you both contribute to automatically. Then, you each have personal accounts for your "wants," giving you autonomy without compromising shared goals.

For Businesses: Business income fluctuates, so Allen advises budgeting with percentages instead of fixed dollar amounts. For example, you might allocate 8-10% of revenue to marketing or aim to keep payroll under 25%. A CPA or financial strategist who knows your industry can provide benchmarks to help you create a realistic spending plan for growth.

Ultimately, a spending plan is a tool for clarity. It exposes your reality, as Tosin puts it, but it also gives you the power to change it. Knowing your numbers is the first step toward scaling your business, achieving your goals, and truly living beyond the grind.

For more on the tools you can use and the full breakdown of our debate on needs versus wants, be sure to check out the full episode on YouTube. And don’t forget to subscribe to our newsletter for more honest conversations about building your career and life.