I’m never going to blow another of my dollars, as long as I live!
Ever said that? What do you think the chances are that you can truly be super-smart, super-careful with your money from here on out, every day of your life?
Probably not very good.
The reality is that there is something in us that likes to cut loose every now and then. We like to buy stuff that we don’t absolutely need, but that we want. And there’s not necessarily wrong with that – as long you’re in control of your money.
Enter: the blow-fund.
The blow-fund is something that you can include in your budget to keep your not-so-smart-but-totally-fun purchases from messing up your budget. The blow-fund is a small amount of money that you set aside each pay-period that you dedicate simply to blow on whatever you want.
Sound wasteful? It’s not. Here are three reasons that a blow-fund might save you from blowing your budget.
One: Stuff happens
You know something unplanned is going to catch your eye. Maybe it’ll be tickets to a new movie, a new app, or a new toy for your child. You can’t tell what it will be, but you can know that it will come up sooner or later.
Rather than be blindsided by it, plan for it with a blow fund. It’s a small buffer that can help you anticipate surprises before they happen.
Two: An emergency fund for your emergency fund
Your blow fund can also act as an emergency fund for your emergency fund. If you add to your blow-fund regularly and end up not coming across something that you want to spend it on, your blow-fund could function as a secondary emergency fund. Just one more source of income that could give you everything you need to get through the time of difficulty without beating up your financial life too badly.
Three: It encourages savings
Without a blow-fund, the temptation to take from a savings account when something unexpected or fun pops up can be tempting. And if you do decide to give into temptation, then you can fall into a spiral of guilt – guilt that may make you want to spend even more. But with a blow-fund, you don’t have to beat yourself up – you already planned for it, so you can just focus on enjoying that movie, trip to the fro-yo place, or dining experience.
The next time you sit down with your budget, carve out a little space for your blow-fund. It will help you when unexpected things pop up. It will remove stress and guilt from your finances. And after all, isn’t that the whole point of a budget?