Mad Money -- How Much is Too Much?
I post a lot about ways to make more money, but in many cases the real issue isn't how much money you make, it's how much you spend. I know a lot of people who make plenty of money, but who are living on the edge, financially speaking. My wife and I got pretty close to that edge ourselves, which was one of the reasons why I started looking for information about how to save money. And from that I found out that lots of people weren't just saving money online, they were making money as well. And now 7 years later, so am I.
But the reason for this post is because I've been thinking about how people view money and how they spend it, particularly after reading Common Cents. Marylaine Block talks about our changing perception of money, and in particular our different and changing views of "mad money."
Mad money is money that you're comfortable spending without really thinking about it. Coffee before work. An impulse purchase in the supermarket check-out line. A spontaneous lunch when you're out with friends. Or the amount of money you'd loan somebody without expecting them to pay you back.
Everything I've ever read about getting your personal money situation in order almost always starts with keeping some kind of record of the money you spend. And I think most people are surprised to see how much money they spend without really thinking about it. I know we were when we first started tracking our spending.
I agree with Marylaine that the idea that a GameBoy should be considered a stocking stuffer is beyond me. And I'm happy and thankful that, at least for now, my kids aren't thinking like that either.
But the reason for this post is because I've been thinking about how people view money and how they spend it, particularly after reading Common Cents. Marylaine Block talks about our changing perception of money, and in particular our different and changing views of "mad money."
Mad money is money that you're comfortable spending without really thinking about it. Coffee before work. An impulse purchase in the supermarket check-out line. A spontaneous lunch when you're out with friends. Or the amount of money you'd loan somebody without expecting them to pay you back.
Everything I've ever read about getting your personal money situation in order almost always starts with keeping some kind of record of the money you spend. And I think most people are surprised to see how much money they spend without really thinking about it. I know we were when we first started tracking our spending.
I agree with Marylaine that the idea that a GameBoy should be considered a stocking stuffer is beyond me. And I'm happy and thankful that, at least for now, my kids aren't thinking like that either.
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