Tip # 21 on Saving, Spending, and Savoring Money


This is a trick I learned many years ago when I was on a young housewife on a very tight budget.  At that time my “discretionary” amount for miscellaneous expenses was $50 a month.

I reserved half, or $25, for unexpected expenses.  And in some lucky months that $25 was carried over to create a mini-savings account, or “crisis cash” as I called it then.  I did say it was a long time ago.  Now my crises seem to come in $200 packages!

I would cash the remaining $25, and when something I routinely purchased went on sale, I would buy $25 worth of it.  Shades of what Nadia taught us in her guest blog Slash Your Grocery Bill (No Coupons Needed!).   Always buy what you’re going to end up buying anyway at a discount.  (An added bonus:  you never run out of deodorant or toothpaste.)

Nowadays I don’t carry my “miscellaneous” amount in cash, and I don’t generally follow the ads as I did in those days, but if I see my favorite brand of hand lotion in Walgreen’s or Target, I know I’ve allotted space in the budget to buy $50 worth (or up to the allowed limit).  So I stock up.

So my miscellaneous budget item has mushroomed from $25 – 100 from 1979 to 2009.   What else is new?!

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