Spending All of Your Designated Funds Mentality
Financial Management

Spending All of Your Designated Funds Mentality

financial literacy

Recently a person I knew went on a trip and for this he set aside about $3000 to splurge on the trip. While that is pretty normal to have a vacation funds, what I found interesting was that during the last few days of the trip he mentioned that he had quite a bit of money left still from this pool of funds and therefore he was actively trying to find ways to spend it. Example, buying more things than intended, dining out at a super expensive restaurant, etc.

I was just thinking how it must feel like work to a certain extent to want to try and spend all of your money in that scenario. For myself I would be inclined to just have a save it for next time type of mentality. Like saying if I intended to spend $10 for dinner but ended up only spending $5 which satisfied me I would just save the rest for next time.

Maybe on your next trip you can fly first class instead as an example. I used to do that all the time as a kid too in various scenarios. Example, if I went to the arcades with the intent of spending three dollars worth of quarters and ended up only spending one dollar because a certain game lasted very long I was actually happy to be able to save it for next time. Some people I saw would just blow all of their quarters mainly to get rid of them before they leave.

In many ways it can naturally give you a habit of enjoying the notion of saving money too as you will find that you can enjoy yourself yet at the end of the day you still have a lot of money left over.

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