Play to Win
We have an allowance to manage our spending. If you know me, you know I love talking about investing! People often ask, “Where do you get the money to invest?” Or they might say “I can’t afford to invest right now, even though I would love to!” I gotta be honest people, it is NOT easy! It takes serious discipline and hunger for freedom. That’s what keeps us going. What sucks is, I like nice things like cars, clothes and GADGETS! I’m over the car thing, kinda… It’s just not worth it to me anymore since they cost so much and will delay my financial freedom big time! Do I still love them? Yes. If I won a small lotto, I would probably get a new car! Yes, we’ve played the lottery! You have to play to win! We don’t play consistently. I’ve decided that I can’t let a car stand in the way of my exit from the 9 – 5!
The Way My Account is Set Up
The reason I bring all of this up is because I’m going through something in my mind today. It’s Friday morning and I am already thinking about eating something other than my standard chicken breast and green beans (that I eat almost every day for lunch). This will cost me money out of my allowance account that I don’t have! Whenever possible we try to live on one income. In our case, the larger of the two. So, the wife and I have 4 primary accounts. Rob’s, Re’s, “The Company ” and “Goals”. The funds in our individual accounts represent an agreed upon allowance or spending money. We receive a set amount each pay period. These funds cover personal items. In my case that would be watches, games and new technology! For the wife that includes brunches, spa days and happy hours! After tithes, “The Company” account covers all household bills, groceries, date night etc. Our “Goals” account for investments and travel is funded by the 2nd income, bonuses and commissions. Lately I have been finding myself in the hole and I’m not sure why. I do have to use my allowance for haircuts (weekly) and gas. This is why we drive the Prius when we are going far! Honestly, we are more aware of how much we drive when we each have to pay for gas. As a realtor, I often drive to out of the way areas. So, I’m sure the cost of gas is contributing to my shortage. We may have to revisit this.
Anyway… back to my dilemma
Today is not my payday by the way and I’m all out of money. Technically, I have $500 bucks in the Rob account but I just did my credit card calculations for the month using our standard spreadsheet and I’m 200 bucks in the hole! I’m not sure where it went except I spent 50 bucks to renew my Playstation Plus membership (yeah, I’ma geek, so what) for the next year, gas and haircut. I also ate out a couple times at work. I want a raise, and I just texted my wife to complain. All she said in response was, “FI baby” (Financial Independence) and she’s right. The allowance is not that serious. I need to find a way. All of our extra money needs to keep working on the real estate and 401k so we can blow this joint soon! Maybe I will start going to the barber every 2 weeks or sell some gadget that I don’t use anymore. Or drive her car (Prius) to work instead of mines. Regardless, I need to stand fast. One day soon, once we are where we need to be, this will all be an afterthought. I know someone out there is reading this and thinking “There is no way I could limit my spending to an allowance!” It’s possible, trust me. That use to be me.
What would you do to cut back until you are back in the black?