When you’re just starting out with debt-repayment and digging out of a hole you may not be bringing in a whole lot more than you’re spending, perhaps you’re just barely covering your needs or perhaps you’re falling short every month.
Setting up a budget and going through your income and expenses with a fine toothed comb will help you get on the road to get out of debt and save money.
The thing about sticking to a budget is deciding between needs and wants. Unless you’re a multi-bazillionaire you’re probably like me in that you have to make choices on what fun things will fit in the budget and which won’t. I know when I started digging out of my personal hole about two years ago I felt like I could barely breathe. I was spending more than I earned and even though I was still spending money on FUN stuff it really wasn’t fun because of the constant worry of making ends meet.
Thankfully that period is behind me now and I am in a position where every month I can choose to buy things I want above my needs, save for travel or spend on other entertainment. But, since I’m still not a multi-bazillionaire (YET!) I still have to make choices. Are you in the same position I am, what do you splurge on?
This type of spending all falls under the category BLOW money, I allocate a certain amount every month and spend it on whatever I like. One thing I’ve chosen to blow money on (no, not cocaine) is getting my eyebrows done. I’ll be the first to admit that I’m not a girly-girl, I rarely wear make-up and I’ve never in my life had my nails or hair done but since a few months I’ve been going to the salon to get my eyebrows fixed.
Why? Because plucking your eyebrows sucks, it hurts, and for $12 I can have them looking professional for another 6 weeks – 2 months. It’s a convenience I’m willing to pay for and I thoroughly enjoy getting it done now that I know I can really afford it.
So how about you, where are you in your financial journey and what do you splurge on?