Is it a good idea to give yourself an allowance when building a personal budget?

Yes.

Most of the time when we limit our short-term actions to attain long-term goals, it hurts. Think about the new diet that someone starts every single start of the year, but by March, it’s done.

Money is the same way.

When you start restricting and structuring spending and debt by using a budget, you might feel that same way. Giving yourself a budget, in many ways, is like giving you a “cheat day” on a diet.

The money can be spent any way you choose, with the knowledge that once that daily allowance of cash is gone, then it’s gone. You cannot pull from tomorrow’s allowance, and you cannot make your allowance bigger as you need.

Spread the love