Because sometimes you just need a coffee

This morning I woke up later than usual. I was up late last night reading, doing laundry and dishes. I wanted to write a blog post and do a few things for my other site but housework was tugging at me. I packed up my Chromebook and am currently writing this post at Starbucks.

I have three hours to be creative before I must go to work. I could have stayed home and been distracted by counters that need to be wiped down, laundry that needs to be done and odd job phone calls that need to be made. Instead, I am enjoying my skinny soy caramel macchiato and writing this post.

Why you need blow money in your budget

This is why everyone needs a little blow money.

Whatever you want to call it (blow money, mad money, fun money), every budget needs a bit of it. This isn’t lunch money if you eat out everyday. This isn’t entertainment money. This is “I want an occasional coffee while I’m writing” money. This is “I want to meet a friend for lunch” money.

Jeff and I each get $50 per month to spend on whatever we wish. I usually spend mine on coffee, Costco frozen yogurt (wow that stuff is good), the occasional lunch, and books. Fifty dollars might not sounds like a lot but most months, we don’t even spend it all. That $50 saves my sanity, too.

Before we allowed ourselves some blow money in the budget, we would have a few good months and then fall off the budgeting bandwagon. A DVD would turn into other purchases and snowball out of control. We felt like we were deprived because there was no room to purchase a pack of gum. That deprivation led to rebellion and later regret. We would retighten our belts only to fall again.

Blow money made all the difference. We each had a little bit of money to play with, to do whatever we wanted with. Since we started allocating blow money, we have not fallen off the wagon. That doesn’t mean we haven’t had months with emergencies, but we haven’t broken our budget with wants. We no longer feel deprived.

If you are having trouble staying on budget, try adding some blow money to your budget. It just might bring you peace and get you back on track.

Do you work blow money into your budget? How has it helped you stay on budget?

Take control of your spending!

There appears to be a stigma about budgets. It has become a dirty word to many.

People tell me budgets are restrictive. They can’t do what they want if they have a budget. A budget is limiting. It is controlling. 

Who would make your budget? Your mom? The mailman? The guy next door?

YOU make your budget!

Since you make your budget, you can put whatever you want into it.

Yarn habit? Yup!

Action figure collection? Sure!

Want to go on vacation? You can budget for that too!

The only limitation on your budget is your income. Now for some people that might be a problem. For the vast majority of people I council, they make enough money to pay all their bills and there is money left over.

It’s time to take control of your spending!

Where did all my money go last month?

Have you ever asked yourself that question? Those of us on a budget never need to ask that question because we made a spending plan before the money went out the door and tracked our spending during the month to ensure we stayed within budget.

A budget

Can you budget for fun things? Absolutely, just make sure your budget aligns with your goals.

If you read the blog, you know our goal is to get out of debt. But that is really just part of a bigger goal. My husband would like to transition out of his full-time job at 55 and focus on his passion. In order to do this, we need to pay off our debt so we can ramp up our retirement savings. We have chosen to make this a priority so we made the decision to cut back on other things.

Do we still budget for some fun stuff? Of course, but that budget is very small compared to our total income. We each get $50 per month for blow money (some people call it mad money). We can spend this on whatever we want. We also budget $100 per month for entertainment. This two items combined represent about 2.5% of our total budget. Typically, we don’t even spend it all, but it gives us breathing room to have a bit of fun while we are on this journey to become debt free. It also doesn’t stop us from achieving our goal. Currently about 50% of our take home pay goes toward our debt snowball.

What are your goals? Does your spending reflect those goals? If not, a budget could help you get there.

You can read more about how to construct a budget here.

Just remember that a budget is just a spending plan. You design it. You control where your money goes.