Let’s make 2024 the year you experience more joy and less stress by having a cash flow plan that works for you. If you are asking questions like “Do I need a Plan?” “How do I start?” then you are in the right place. Let’s dive in.
“I recently bought a car. I kind of cleared out my savings so that I could get it, and now I’m trying to build it back up. “ -Jasmine
Do I need a new Plan?
Everyone needs a Plan FULL STOP. People with plans are 10X more likely to succeed financially. But here’s the thing- if you have a Plan and your January looks the same as your December then you don’t need to do anything. Some people want to make a new plan every single month. The reality is we don’t need to make new plans every month if our life stays more or less the same. What we want is simplicity and consistency. But if the new year brings a new job, new living arrangements, or the start of grad school then it is time to make a new Plan. In the case of Beans member Jasmine, she is making a new Plan because life has changed. She bought a car (Congrats!) and used her savings to make the purchase possible. Now she’s making a new Plan to set herself up for success in 2024.
Formula for Success
Making a Plan is simple using The Beans app. We look at your Income, Fixed, and Flex expenses. If this is your first Plan the 60/40 Plan has your name written all over it. Research and input from The Beans community show the 60/40 Plan is best for reducing financial stress for Caring Professionals. Aim for 60% of your income to go to Fixed expenses and 40% to Flex.
Making Savings Your Superpower
Saving is an essential element of any good cash flow plan. Research shows that with just a few hundred dollars in savings, you make stronger financial decisions. This cushion gives us security and allows our brains to relax which leads to healthier financial decisions.
At The Beans, we set our Essential Savings target at $2,500. Evidence shows with $2500 in savings you are insulated from most economic shocks, meaning it’s enough to help you bounce back when something big comes up. Don’t worry if your current savings balance falls below that $2500. The easiest way to build Essential Savings is through automation. We calculate your savings number and automate that savings so you never have to worry about it. On average our users save 5X more per month using Essential Savings!
Plan for Joy
When you create your Plan don’t overlook the importance of joy! Research shows that when you spend on what brings you joy you actually get more utility per dollar. That means when your spending aligns with your personality and your values you will experience higher levels of satisfaction. Does your Plan align with your values? Maybe your priorities have changed in 2024, match them against your Plan.
2024 is YOUR year! Whether you are making your Plan for the first time or revisiting an existing one following a life change, remember to make savings your superpower and align your plan with your values. Here’s to a year where you experience more money + life balance. Cheers to financial progress in 2024!