Its been said that if something is fun your more likely to stick to it. So how can you make sticking to a budget, and saving money fun?
Money Saving Advice and Answers
Its been said that if something is fun your more likely to stick to it. So how can you make sticking to a budget, and saving money fun?
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Try by giving yourself a reward for sticking to your budget for 6 months or a year, etc. So if you wanted to stick to your budget for a year included in the budget would be money set aside each month to maybe take a trip somewhere. I know for me it’s fun to see my daughter’s college savings and our retirement grow and also to plug the numbers into a financial calculator to see what those accounts will be worth in ten or twenty years.
I got this idea from a great book (see below).
The whole idea of saving your money is that you get to enjoy it more. That’s why people slave away to pay off mortgages, save their money, and invest it. Delayed gratification.
If you’re one of those people who can’t wait for delayed gratification, use what Anita Bell calls the “sanity allowance”. Set yourself an allowance of no more than about $15 or $20 a week, depending on your income. Keep this in a plastic ziplock bag in your handbag or wallet. When you feel the need for a lamb kebab with garlic sauce, or a cafe latte, or the latest copy of Model Train Weekly, use this money. This is for those little luxuries that make life worthwhile. They should be the cheap little things you enjoy, like a couple of beers with mates, or a dvd on Sunday night, or chewing gum… Whatever floats your boat. The idea is that you have budgeted for this. This money is specially put aside for you to waste on useless purchases that make you feel better. Capping it at a low amount means you don’t break the bank or get bad habits, like spending $150 in an hour at a clothing store, but it’s a flexible enough amount to buy those little things that keep you sane.
If your tastes are a little more upmarket, you can save your sanity allowance and use it after a couple of weeks for a shoe shopping fix or an expensive resturaunt meal. Just make it an amount that you can afford. If your allowance is $15 a week, then saving for 4 or 6 weeks will be necessary before you feed your craving for new shoes. It all depends on what you like spending your money on.
It should be a very small amount of your income. It should also never get in the way of your other budgeting. You should never ever take money from another part of your budget to supplement your allowance. The whole idea of it is that you are more likely to stick to a budget if you’re happy, just like a dieter is more likely to stick to a diet if they get the occasional chocolate eclair.
Check out Anita Bells’ book for more details. It’s one of the best things I ever read. It’s hillarious.
Best wishes
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