How Should We Budget $5000 of Discretionary Income?

PLAYING WITH SPARE CASH   Not many people can say they have extra discretionary income kicking about every month where they have to drum up ideas about how to spend it.  For those of you that do you can still manage that money with a budget if you want to stay on track with your financial goals. When Mrs. CBB and I paid off our mortgage in April 2014 it was a grand time for us. We managed to break down our mortgage into pieces and pay it off far sooner that we had ever dreamed of. The reason that happened was due to perseverance and a drive to be successful at whatever we did. I guess in a way we were pushing ourselves to earn more money but we knew in the back of our minds that it was all stepping-stones for our dream career roll. Now that our mortgage is paid we have lots of discretionary income which we just recently worked into our budget. Lots of people would be more than tempted to start spending money especially if they’ve hit it big time and the money is rolling in.   What is Discretionary income vs. Disposable Income? […]

Why we budget an adult family allowance

CASH TO SPLASH GUILT-FREE   Sometimes it’s better to have a family allowance or splurge money for those times that you least expect to spend money but have to. Another reason you might want a family allowance category in your budget is when you really….really…. really want to buy something normally not on your spending radar that you just have to have. I can remember a time where I really wanted a new pair of sunglasses and I’ll let you guess where the money came to pay for them. That’s right the family allowance category in our budget. Although most times it’s myself who uses it the wife sometimes splurges on something she wants like a pedicure. No we don’t put that under health and beauty because it’s not products we are purchasing nor does she really need it where a haircut might be a different story. Having pretty feet is nice to have so she treats herself once in a while to a relaxing day at the spa. I know some of you might use your emergency savings for these times but for us they really aren’t emergencies nor are they part of our entertainment budget.   Family allowance […]

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