Comments on: Give Yourself an Allowance to Control Spending and Save Money http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/ because money doesn't grow on trees Thu, 09 Feb 2012 19:16:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: 7 Tips To Manage Your Debt - Amateur Asset Allocator http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-10956 7 Tips To Manage Your Debt - Amateur Asset Allocator Sat, 17 Apr 2010 16:26:46 +0000 http://www.mydollarplan.com/?p=968#comment-10956 [...] spending – The single easiest way to control your debt and avoid getting in too deep is to control your spending. We can thank the recession for opening the eyes of millions of people, helping them finally see [...]

[...] spending – The single easiest way to control your debt and avoid getting in too deep is to control your spending. We can thank the recession for opening the eyes of millions of people, helping them finally see [...]

]]> By: Weekly Links: 10/3/9 With Random Knowledge http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9534 Weekly Links: 10/3/9 With Random Knowledge Sat, 03 Oct 2009 11:18:54 +0000 http://www.mydollarplan.com/?p=968#comment-9534 [...] My Dollar Plan has a good idea: Give Yourself an Allowance to Control Spending and Save Money. [...]

[...] My Dollar Plan has a good idea: Give Yourself an Allowance to Control Spending and Save Money. [...]

]]> By: Home Finance Tip Blog » Emily’s list: Non-Violence Day edition http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9533 Home Finance Tip Blog » Emily’s list: Non-Violence Day edition Sat, 03 Oct 2009 09:12:16 +0000 http://www.mydollarplan.com/?p=968#comment-9533 [...] your assign score. 3.    My Dollar Plan makes the housing for ground you should consider heritage yourself an allowance, and explains how it helped him revilement backwards on debt. 4.    The Sun’s [...]

[...] your assign score. 3.    My Dollar Plan makes the housing for ground you should consider heritage yourself an allowance, and explains how it helped him revilement backwards on debt. 4.    The Sun’s [...]

]]> By: Brian http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9445 Brian Thu, 01 Oct 2009 13:15:16 +0000 http://www.mydollarplan.com/?p=968#comment-9445 @Peter -- Learning to take responsibility for your spending decisions is a huge key in becoming financially free. Thank you for your comment! @Peter — Learning to take responsibility for your spending decisions is a huge key in becoming financially free. Thank you for your comment!

]]> By: Brian http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9435 Brian Thu, 01 Oct 2009 03:37:19 +0000 http://www.mydollarplan.com/?p=968#comment-9435 @AverageJoe -- Thank you for the input! Much of good money management seems to be about dealing with the psychology behind it all. The allowance freed me as well -- I didn't have to feel guilty about spending as long as it was within the limit. Congrats on the loan repayment -- incredible job! @AverageJoe — Thank you for the input! Much of good money management seems to be about dealing with the psychology behind it all. The allowance freed me as well — I didn’t have to feel guilty about spending as long as it was within the limit.

Congrats on the loan repayment — incredible job!

]]> By: Peter http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9434 Peter Thu, 01 Oct 2009 03:35:24 +0000 http://www.mydollarplan.com/?p=968#comment-9434 This is a very good advice. The freedom that goes with this plan makes one aware of having to take responsibility for his actions as well. Nice one! This is a very good advice. The freedom that goes with this plan makes one aware of having to take responsibility for his actions as well. Nice one!

]]> By: AverageJoe http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9431 AverageJoe Wed, 30 Sep 2009 21:07:00 +0000 http://www.mydollarplan.com/?p=968#comment-9431 Hi Brian, Great article - this is a very effective strategy and I and my wife use it as well. We call it a "spending plan," though, because the wife finds "allowance" makes her feel like a child and "budget" makes her feel constrained. We operate on a monthly basis and give ourselves an equal amount of money. It's a rolling number that includes all personal spending including cell phone plan, gym, clothes, and gifts. If we want, we can spend less then the plan number and roll it into the next month. Having something like this has a lot of positive impacts. For example, if you give your wife a $100 gift from your plan money, it means more to her because she knows how much you are going to have to give up in other areas to give her that gift. We typically raise the amount each year by approximately the rate of inflation plus a small percentage so that the purchasing power stays about the same or maybe slightly greater. Interestingly, I started doing the spending plan long before I married my wife more as a technique to help me SPEND money! I was paying back six figures in school loans and I was so focused on it that I felt guilty when I would spend ANY money - even on food! - I was spending money that could have gone to the loans! However, I looked at the numbers and realized that I was pushing too hard. The $100/month difference between eating ramen and eating normally really was weighing on me, and with the amount that I was still sending to the loans, it only represented a very small fraction. In fact, I calculated that spending the additional $100/month on food would only delay my repayment end date by about 1-2 months - and balancing that fact was my increasing dislike for ramen. Consequently, I instituted my spending plan and set up numbers that provided for a reasonable level of spending on food. With the plan in place, I felt guilt-free about spending up to that number, which was a relief. Weird, maybe, but I paid off 116K worth of loans in about 42 months, so you can't really argue with its effectiveness! Hi Brian,
Great article – this is a very effective strategy and I and my wife use it as well. We call it a “spending plan,” though, because the wife finds “allowance” makes her feel like a child and “budget” makes her feel constrained. We operate on a monthly basis and give ourselves an equal amount of money. It’s a rolling number that includes all personal spending including cell phone plan, gym, clothes, and gifts. If we want, we can spend less then the plan number and roll it into the next month. Having something like this has a lot of positive impacts. For example, if you give your wife a $100 gift from your plan money, it means more to her because she knows how much you are going to have to give up in other areas to give her that gift. We typically raise the amount each year by approximately the rate of inflation plus a small percentage so that the purchasing power stays about the same or maybe slightly greater.

Interestingly, I started doing the spending plan long before I married my wife more as a technique to help me SPEND money! I was paying back six figures in school loans and I was so focused on it that I felt guilty when I would spend ANY money – even on food! – I was spending money that could have gone to the loans! However, I looked at the numbers and realized that I was pushing too hard. The $100/month difference between eating ramen and eating normally really was weighing on me, and with the amount that I was still sending to the loans, it only represented a very small fraction. In fact, I calculated that spending the additional $100/month on food would only delay my repayment end date by about 1-2 months – and balancing that fact was my increasing dislike for ramen. Consequently, I instituted my spending plan and set up numbers
that provided for a reasonable level of spending on food. With the plan in place, I felt guilt-free about spending up to that number, which was a relief. Weird, maybe, but I paid off 116K worth of loans in about 42 months, so you can’t really argue with its effectiveness!

]]> By: Bernard Madoff and The Bull, A Sculpture http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9421 Bernard Madoff and The Bull, A Sculpture Wed, 30 Sep 2009 01:39:43 +0000 http://www.mydollarplan.com/?p=968#comment-9421 [...] My Dollar Plan: Give Yourself an Allowance to Control Spending and Save Money [...]

[...] My Dollar Plan: Give Yourself an Allowance to Control Spending and Save Money [...]

]]> By: Brian http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9419 Brian Tue, 29 Sep 2009 13:54:57 +0000 http://www.mydollarplan.com/?p=968#comment-9419 @Madison -- I was beginning to think I was the only one who did this! It really does work well, doesn't it? @Madison — I was beginning to think I was the only one who did this! It really does work well, doesn’t it?

]]> By: Madison http://www.mydollarplan.com/give-yourself-an-allowance-to-control-spending-and-save-money/#comment-9418 Madison Tue, 29 Sep 2009 13:48:10 +0000 http://www.mydollarplan.com/?p=968#comment-9418 Scott and I have used allowances for 10 years. It's a fantastic way to curb your spending. Ironically, we also still take out the same amount we did 10 years ago! Scott and I have used allowances for 10 years. It’s a fantastic way to curb your spending. Ironically, we also still take out the same amount we did 10 years ago!

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