Tuesday, July 27, 2010

Allowance for Adults

Often you think allowances are just for children.  But, did you know, if you give yourself an allowance , a set sum of money on a regular basis, you are more likely to stick to a budget? An adult allowance gives you freedom to spend on yourself without guilt. You can spend it on fun or frivolous things.

Here's how you start...
1. Determine the amount. Be reasonable. If you must have that coffee everyday, or one night out a week, plan for it. Don't overdue. Most of us have more "wants" than cash on hand. Remember, once the allowance is gone, no more until next payday. For this reason, allowance is best received in cash.  There is no temptation to get more from your debit card.
2. If you are married, talk it over. Set the rules. Both of you get an allowance. Determine the parameters; for example, the allowance should not have to go toward those last minute groceries, like picking up milk. It is your money to spend on what you like.
3. Determine the time frame.  If you get paid every other week, pay yourself your allowance every other week.
4. Keep track of how you spend it. If you know how you spend your allowance, it will seem like you have more. If you don't, chances are you will feel like it vaporized into thin air!
5. Sometimes you get more! If you get a bonus, or extra cash, say from a tax return, treat yourself to an "allowance bonus" for something special.

*Idea from RealSimple Magazine August 2010

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