When I decided to start the spending diet, I didn’t really discuss it, I just implemented it. So imagine Mr. Hippie’s surprise to learn that he had essentially been cut off. He got paid on the second, so we went out, ran errands, and did a little grocery shopping. We also withdrew enough cash to cover our “allowances” for the month. He was excited to have cash in hand since that isn’t something we normally do. I think he was also working under the assumption that this allowance would be happening every time he got paid. This was particularly enticing since January is a three pay-period month for him. Now picture his shock and sadness when he realized that this money had to last him all month. Despite his reluctance, the plan seems to be working so far.
The biggest part of the plan is to reduce extra spending, but another aspect is to try and find ways to increase your income. One of the things I have been doing to raise a little extra money is make these cute skate-wheel bags.
I’ve been selling them to other derby girls and hope to get some listed on etsy soon. Hubby assumed that I was doing it to raise extra “allowance” for myself. He was a little surprised when he learned I plan to contribute the profits back to the general fund to pay down our debt but I think he was relieved that I wasn’t just trying to raise a whole bunch of extra money for myself.
How I spent my January allowance:
- $35 ~ Derby dues. This is an automatic withdrawl from my checking account, so I will only be taking $65 cash each month for my allowance.
- $10 ~ 2012 wall calendar and a start on my Christmas shopping for next year. Gifts are wants, not needs, so my gifting needs to come from my allowance. However, both items were half off, so I felt the expense was worth it.
- $15 ~ “gifted” to my husband. He has been wanting a big ticket item for a while. He got some money for Christmas and had allowance money in hand, so decided the time to splurge was now. He was a little short. I was going to loan him the money until February but decided that since:
A. The spending diet was my idea and
B. He had no idea he was going on a diet, it would be nice of me to cover his overage.
Besides, he sprung for his item the first week of January and still spent NO MORE MONEY all month. It was worth $15 to me for him to buy-in to the plan; it will be a savings in the long run.
- $4 ~ “Brunch” with my son. I received a $10 gift certificate to a local restaurant for Christmas from one of my students. Adam was at work and Gwen was at a friend’s, so I decided to take Dylan to breakfast with the gift certificate. There was a slight overage and I needed to leave a tip, so I sprung the four bucks to spend a nice morning with my son. I wouldn’t have gone if I hadn’t had the certificate, but the money was well spent; the breakfast sandwich was big enough to provide him with a lunch as well. Plus, we talked about the spending diet while we were out, so hopefully he is learning good financial habits.
- $6 ~ Beer. One of the things my husband likes to spend his allowance on is beer. I myself will not spring for a case of beer because I can’t stomach the idea of spending that much of my allowance on it. However, I do enjoy a beer from time to time so I pay him a dollar every time I take one of his. He is the clear winner here because the beers actually only cost about $0.75 each and he gets to keep all deposit money to use in the future but I do take free sips of his beers from time to time.
- $5 ~Crafting Supplies. I needed some ribbon, velcro and a fat quarter to complete a project. If I sell the stuff on Etsy, I will repay myself for the expenses but for now, these items were a want.
Not bad. At the end of the month I still had $25 left even after “giving away” part of my money. I know I have some expenses coming up that will put me over some months allowances, so having a cushion feels good.