Surprise FUNDS!...Now What? Three Simple Steps to Stay on Budget.

With Tax season upon us, and many companies handing out bonuses during their first quarter, I feel it appropriate to talk about surprise funds!

Many of us have long wishlists for "if we only had the money". Maybe its something small like getting a few books to read or a new outfit, or maybe it's larger like an outside garden or a trip to Disneyland. Everyday more products are available to us, and thus the wishlist tends to become verrrrry long. Because of this, when unexpected or extra money arrives it tends to be WAY overspent. Why? Because we have the mentality of "we just got the money for that" about EVERYTHING extra we buy until it is 2-3x as much as we recieved, causing more financial issues than it helps.

How can we combat this? I've narrowed it down to three simple steps that, if followed, help to ensure you stay on budget and can still have fun indulging!

1. Make A List

Sounds simple right? Many of us have one handy, but it may not be the same for all parties involved (like a spouse or friend). Have each person that will be using the money write a list of the top 3-5 things they envision the money can be spent on, with an approximate $ cost. Then...

2. Discuss

Come together and discuss the lists! Give everyone a chance to share everything on their lists and discuss NEED vs. WANT together. Chances are one or more things will be common on the lists, which makes this process easier and all the more fun! When all parties feel they have an equal say, you can proceed unitedly and with common goals instead of willy-nilly spending.

3. Allocate Funds

After narrowing down the list, be sure to set specific amounts per item so that everyone is on the same page and you have a measurable goal/amount, which is easier to track. DO NOT go over the amount. Do your research! Find the products you truly desire, at the amount you are willing to spend. Maybe only do part of a project and complete it the next go'round. When we are actively searching for great deals, we tend to spend less than initially thought, thus padding the budget. Win-Win!

There you have it! Following these three simple steps will provide the freedom you desire while sticking to the budget you require. Surprise money is always exciting and fun. Spend responsibly. ;)

Happy Indulging!