Welcome back budgeteers! Today we will be discussing how to budget when it comes to things we need and things we think we need. Now, I think it is okay to treat yourself every once in a while, trust me I do it all the time, but making it a daily/weekly habit may not always be the best option either. So, we will be diving deeper into this topic and decide when you should go ahead and get that coffee or buy that cute sweater!
Looking back to the budget we made together a few posts earlier, you may have noticed I suggested creating a spot for “extra spending money.” This is a spot where you build a fund within your budget for either emergency expenses or for treating yourself to something you have been wanting! Notice how I used the word “build”. We do not want to spend our “extra spending money” every week because then you will never end up actually building up that fund but rather spending it all. The trick for this is to plan ahead and look into events or spending days you may want to go on in the near future. This is what you want to put your “extra spending money” towards. This will motivate you to keep yourself accountable and actually save up the money and not spend it as often.
Of course, it is a little challenging to save a lot of money in the “extra spending money” fund when you have other expenses to take care of first. It may not seem like it but even putting just a small amount in that fund weekly or biweekly can add up quickly. All it takes is keeping yourself accountable and not spending any money in that fund, unless you need it for an emergency of course!
Come back next week to read about factoring personal care products into your budget!
See you soon!