Balancing Money – Step #2
This post is dedicated to Step #2 in my Balancing Money Series. We already figured out what I owe so now it’s time to give myself an allowance.
Yes, we may have gotten an allowance as kids, but did you know that giving yourself one as an adult will put you on the right track to a hefty savings account?
Figure out what you owe each month versus what you make and look at whats left over. Give yourself a weekly or monthly stipend to just use exclusively for whatever you want. This will allow you to not feel so helpless when in save mode and will teach you some valuable lessons in purchasing what you truly want rather than mindlessly purchasing something that doesn’t bring you joy. It will also ensure that any other money left over is transferred into your savings account out of sight and mind.
Your allowance must be COLD HARD CA$H. Giving up cash leaves a sting that you just don’t get from swiping a card or punching in numbers. If you don’t do so already . . . Try and get in the habit of the physical act of using cash . . Be connected!
My allowance will start at $20 per week. This may seem like a lot, or it may seem too little but I’m not exactly sure how things will go just yet. This seems like an ok place to start and if I need to tweak down the road, I certainly will!
This money must be taken out each week and kept in my wallet. For some reason if I have money left over, it will stay there as rollover dollars. If there is a good chunk left over by the end of the month which I doubt there will be, it will be deposited into my Balancing Val Account.
This money is meant to be used for fun stuff, on things I enjoy. Any other basic need (i.e toiletries ect.) will not be a part of this unless I got a good rollover going on or the circumstances allow.
So what can I do with $20?
PLENTY! . . . .
* I can see 2 movies
* Go out to 1 decent dinner
* Go out to 2 decent lunches (lunch specials rock!)
* Try out a new beer flavor
* Buy ingredients for a new recipe
* Buy 1-4 Starbucks drinks (tea is not that expensive!)
* Buy a new clothing item or a few accessories
* Test out a new makeup/perfume/lotion/nail polish
* Buy a new kitchen tool or accessory
* Get some takeout and rent a movie
* Cover most or all of a race fee
Are we noticing a trend here? A mostly food related list perhaps? . . .
Actually, this shouldn’t be that bad!
I plan to start this in December as I will have a better idea of what is going to be spent then. Stay tuned for Step #3!
What would you do with a $20/wk allowance? I’d love to hear your thoughts!