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-   -   Do normal adults give themselves an allowance? (...to fast or not to fast - there is no question!) (https://www.mersenneforum.org/showthread.php?t=21730)

jasong 2016-11-09 04:19

Do normal adults give themselves an allowance? (...to fast or not to fast - there is no question!)
 
I've heard of people trying to predict where their money will go in order to try to save money. But do people ever specifically set aside money for vanity items, like say, Farmville2 keys? I'm thinking every 7 days I could give myself either $5 or $10 to spend on Farmville or maybe something else kind of silly. I'd have to choose the 5 or 10 before I started the process, and would track it on my calendar.

kladner 2016-11-09 04:47

[QUOTE=jasong;446796]I've heard of people trying to predict where their money will go in order to try to save money. But do people ever specifically set aside money for vanity items, like say, Farmville2 keys? I'm thinking every 7 days I could give myself either $5 or $10 to spend on Farmville or maybe something else kind of silly. I'd have to choose the 5 or 10 before I started the process, and would track it on my calendar.[/QUOTE]
It's called budgeting, something I am very bad at.

xilman 2016-11-09 07:35

[QUOTE=jasong;446796]I've heard of people trying to predict where their money will go in order to try to save money. But do people ever specifically set aside money for vanity items, like say, Farmville2 keys? I'm thinking every 7 days I could give myself either $5 or $10 to spend on Farmville or maybe something else kind of silly. I'd have to choose the 5 or 10 before I started the process, and would track it on my calendar.[/QUOTE]Yes, on the assumption that SWMBO and I are normal adults.

We each have a personal bank account (termed our individual slush funds) into which we divert a small portion of our joint income from our joint account. What we spend it on thereafter has absolutely nothing to do with the other so there's no sense of guilt at purchasing what the other might regard as a frippery.

petrw1 2016-11-09 15:40

Patience and Priorities
 
We have 1 joint account and have very basic priorities::

In order (barring extreme unforeseen circumstances):

1. Day to day necessities like groceries and gas are a given.
2. Every utility bill is paid when due.
3. Credit cards are paid in full when due (we consider the 19% or 29% interest rates almost Mafia-like).
4. A predetermined fix amount goes into retirement savings every month
5. If there is leftover money then there is no guilt spending it on anything we desire

We are both reasonable and frugal, we won't spend money on what we consider frivolous things just because we have extra money or worse yet, because there is still "room" on our credit card.

Granted there are times when there are major expenses like a new car or major home repairs or a big vacation. These we finance with our own secured Line-Of-Credit (again Bank Loan rates are too high).

And to be fair. we are older and established now but when we were young the priorities were no different. For a while there was no #4. and not a lot of #5.
Even though I easily could have afforded car payments I drove an old Rust-Bucket for several years until College Loans and the House Mortgage were paid off.
And the reason it didn't take 25 (or even 10) years to pay off the house is partly due to the rules above but more so due to the mindset that the first house is not the dream home.
It was very modest. We did not even get close to a house price that the bank claimed we could afford based on our income (as they wrung their greedy little hands under their Solid Oak desk).
Having the house paid off early is what enabled us to get the low-interest secured Line-Of-Credit to cheaply finance things like the next car.

I have many friends and co-workers (read: have the same income I do) that early on got the fancy new car(s) and the big beautiful house in the best neighborhood.
And now 30 years later as we are all closing in on retirement:
We have been debt free for years and enjoy a winter vacation every year.
They are excited to announce that in only 3 more years the house will be paid off and they hope to travel after they retire.

henryzz 2016-11-09 16:48

[QUOTE=petrw1;446859]We are both reasonable and frugal[/QUOTE]

Some people find this sort of approach works better than others. Some people need more discipline.

chalsall 2016-11-09 18:04

[QUOTE=jasong;446796]But do people ever specifically set aside money for vanity items, like say, Farmville2 keys?[/QUOTE]

Are you saving for your retirement?

To answer your question directly, when I was a young freelance programmer one evening I was faced with the choice of buying myself dinner or buying a book.

I bought and read the book that evening, and fasted until the next day. True story.

jasong 2016-11-09 21:14

[QUOTE=petrw1;446859]And to be fair. we are older and established now but when we were young the priorities were no different.[/QUOTE]
Yeah, I worry about the future. Because of my schizophrenia, it's difficult to get a good job, and full-time is near impossible because of my anxiety disorder. But...

They keep learning new things about the brain, therefore...

My hope is that I'm telling people the "truth" when I say I'm living my life backwards and the comfortable retirement is being lived before the full time job.

MooMoo2 2016-11-21 01:26

[QUOTE=chalsall;446876]Are you saving for your retirement?
[/QUOTE]
The question wasn't directed at me, but my retirement savings are automatically deducted from my paycheck. Utilities, mortgage payments, etc, are all automatically deducted as well.

I also have an emergency fund of a few thousand dollars that I don't touch. Some additional money is set aside for gas, clothes, food, and other high priority expenses. Everything else is for entertainment (bobsled rides, pontoon boats, exotic car rentals, etc.).

[QUOTE=chalsall;446876]
To answer your question directly, when I was a young freelance programmer one evening I was faced with the choice of buying myself dinner or buying a book.

I bought and read the book that evening, and fasted until the next day. True story.[/QUOTE]
I had a similar experience. On one trip, I splurged on a business-class flight and a few expensive dinners. I ended up skipping all of my lunches on that trip.

snme2pm1 2016-12-08 07:37

A person doesn't normally need to consume food every day.
There is such a thing as the 5:2 diet, which I have partially subscribed to.
One bloke I know calls it the cave man diet, since such a person can't rely on food every day.
After alarming results from blood chemistry tests, the GP warned me off that, but I plan to resume, real soon now!
I figure (aided by web reading) that the blood chemistry was skewed, but not a real problem.

Regarding money, perhaps somewhat like Wayne, rather than closing a mortgage account, it was converted into a zero cost line of credit, interest applies of course.

rajula 2016-12-08 08:36

I often over-scrutinize my possible extra spendings so that I eventually decide not to spend the money. There is one exception, groceries, where I allow myself to buy the best quality (which are sometimes, but not often local) vegetables, bread, coffee etc. as long as we consume those in our family.

Perhaps I have been relatively fortunate with my jobs, but I have never had the need to actually do a budget. One huge financial advantage in living in Finland is that the education is free. Thus even as an undergraduate student I actually saved money (and invested it) by doing small extra jobs. Eventually after graduate school and a post-doc period, I already had enough savings/investments for a car and half of the current apartment. Also, I was lucky to take a loan from the bank when the interest rates were close to zero and the banks did not have as large margins as they have now. Now at the age of 34 I am completely mortgage free, have enough money (partly invested) to replace my current car with a new one when I feel like.

However, I still would never spend $5 or $10 a week for things like Farmville. It would simply not pass my decision process. :smile:

snme2pm1 2016-12-08 08:56

[QUOTE=rajula;448738]...living in Finland is that the education is free. ... have enough money (partly invested) to replace my current car with a new one when I feel like.
[/QUOTE]

Wow, free education.
In Australia of 1980 era, it was possible to have a part time evening job in a restaurant to fund rent.
These days I have no idea how students can sustain rent costs which have gone ballistic.

I would augment the mention of "replace my current car", by a caution not to replace your current spouse.
Unless that is also free in Finland!
Probably in most jurisdictions, that is a crippler in many ways, indefinitely.


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