Welcome to part three in this series on Spending Smart. Before you read this article, I recommend you take a few minutes and read the first two parts (if you haven’t already) -
- Part One: Money and Spending
- Part Two: Social Pressure and Spending.
These ideas focus on us as consumers and household managers realizing that we hold the power for financial change in our lives.
The Lesson
We don’t have money that recreates itself as soon as we spend it. Most of us also don’t have a million dollar trust fund to fall back on when our earned income gets a little low.
Over the weekend, I took a look at the Parade Magazine which is a supplement to our local newspaper. The topic? What People Earn: Our Annual Survey. The income ranges for the normal middle class families working full time were between $17,000 to $143,000+.
Reading this information has given me a bird’s eye view of the occupations and incomes of normal people all across America. While many of us are rich beyond measure with our personal lives. Meaning our values, our families, our friends, etc. But the truth is that there is no way that we can “Keep up with the Kardashians” with our realistic incomes. We have to take what we have and make what we need out of it by spending wisely.
I’m not suggesting that you should never enjoy the fruits of your labor, but there is a method to the madness.
The Method
Preparation. This means saving up for the spontaneous purchases. There is nothing wrong with wanting things. There just has to be a balance and keeping in alignment with what you can afford.
So, how can this be accomplished?
Effective budgeting and planning. This is how you can promote yourself from the basics of budgeting to becoming a master of Household Management. Add extra categories to your budget for blow money, clothing, eating out, entertainment, etc. Setting aside money for these purchases monthly will help you to stay financially on track and you won’t feel guilty for spending money on “not so planned” items or adventures. You “spontaneously” planned for it. 
Also know that the economy will eventually make a full recovery. But unless we take the initiative to become better at managing our spending, it won’t matter. What’s most important is you and how well you manage your money.
How would you grade yourself as a Household Manager? What can you improve? Click here to join the conversation.
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{ 4 comments… read them below or add one }
Nice post! I know that I noted using this “not-so-spontaneous” fund in your previous post. As an addition, I also take any extra money from that fund at times and put it toward other accounts. The sum is the same, but knowing that you are that much closer to one longer term goal without doing anything but transferring money from one account to another can be a nice mental financial boost.
Yes Nell, you went ahead of the lesson.
I definitely understand your tactics. It’s a mental process to reach your goals and it helps to see the money in the actual account and know that it’s there. I love it!
For the first time I am taking a cruise to the Caribbean and I owe it all to reading your posts and my taking the time to plan my budget and saving for the goal. I can honestly say I am very proud of myself and am able to relax until June when we set sail.
Thanks Patrenia!
Yeah!!! That is so awesome Ms. Freeman. I know you are really going to enjoy yourself especially since the normal stresser, money, will not be an issue. And you are very welcome.
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