What is nibbling at your money?
It’s the little things.
Like a bunny in a garden, nibbling everyday at the plants – The plants that would eventually produce fruits and veggies. That little bunny will destroy your garden if left unchecked. When you have the little things nibbling at your money it will destroy what you could be creating in the future.
So what are these little things?
$ Coffee
$ Lunches
$ Dinners
$ Stops at ‘convenience’ store
$ Movies
$ Entertainment
$ Hobbies
$ Magazines
$ New shoes, new purses, new, new, new ~ latest, latest, latest
$ Gifts
These little things can add up to big numbers fast. Because $5 here and $5 there add up to $20, then $100…and by the end of the month these little things can add up to $1,000 ~ that is a house payment.
I have seen this with many people, particularly, young couples. It is understandable. You worked hard through college, thinking that when you get out you would start making a good living, and you do! You get that first job making $45,000 and that is a lot of money, especially when you have been eating noodles for four years, but remember Jessica ~ in the importance of financial planning ~ January 8, TOG Blog. If you have consumer debt, your $45,000 doesn’t go very far. And remember the time value of money ~ $1,000 invested today @ 8% will be worth $32,000 in 50 years.
So what do you do?
Sit home and do nothing? NO! You budget. You plan. And you save.
One line item you can put in your budget is an allowance for the little things. This is your pocket-money that you have to spend or save – Whatever you want to do with it. I have had clients that call this their ~ stash, mad money, moola. Give it a great name. Keep it in a special place. Pay yourself your allowance ~ weekly, bi-weekly or monthly. BUT! When it is gone, that is it! You will have to wait for the next allowance to buy the little things. An allowance will keep you from feeling deprived but will also keep you on track. An allowance will keep the little things from nibble away at your money and your future.
Budget, Plan, Save. Create a Financially Fantastic Life!
Happy Easter
| Tax Time | Net Worth and Financial Stability | ||
| Tax Time | |||
| Net Worth and Financial Stability |
Mom2Twins
My boy, nearly eleven, has read and enjoyed “Wealthy Living Workbook: Simple Skills for Creating a Financially Fantastic Life”. He has set his budget and started saving for the future. His first goal is to save for a lawn mower, so that he can earn money mowing the neighbor’s lawn. His second goal is getting an IRA.