Make a resolution to pay off debt. Some folks may need additional planning to ensure adequate money is set aside for things such as family vacations, weekend getaways, or other fun things that may not otherwise be budgeted for. Keep in mind that “fun money” is really not “fun” to spend unless you know that the important things are taken care of first.
Putting together a monthly budget and testing it for a couple of months will give you an idea about how attainable your entertainment and enjoyment goals are compared to where you are today. It will also allow you to spend your “fun” money without guilt once you get there. While budgeting, be sure to set asid some money for enjoyment as well. Doing so will give more control over your finances.
It’s a good idea to have a separate savings account for your enjoyment money, especially if you’ll be saving larger sums over a longer period of time. On a monthly budget, fun money can cover entertainment and small things each month such as movies passes or trips to the ice-skating rink. Ideally, making purchases or attending events that are for entertainment shouldn’t come from an “emergency” savings account. However, having one savings account that does it all is better than none at all. You’re never too young or too old to start saving. For any savings to grow there must be a budget. For a budget to be successful, it will take commitment, fiscal responsibility and reasonable expectations.
A household that is financially responsible will have a budget, regardless of the income that household may be. Nobody wants to have to deal with the stress and anxiety that comes with overspending; budgets are going to ensure that finances stay on track with both short and long-term enjoyment spending goals. It is the financial tracking document that shows what limitations you may have based upon how you’re allocating money. Once finances are tracked in a monthly budget, you may be surprised at the findings. It’s possible that there may be places where you can cut back to save a little extra, or you may find that there is more currently being spent on enjoyment than what can be afforded. After you’ve identified your current situation, you can make adjustments accordingly and possibly begin contributing to your long-term savings account for enjoyment.
The first thing to do is to get some advice from professionals. At Debt Advisors, we understand that following a budget can be especially challenging for some folks who struggle with debt. We help people with debt related issues that may be resolved with credit counseling, chapter 7 or chapter 13 bankruptcies. We’d love to help! Ask for a free Debt Advisors consultation.
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