Pocket Money, the mythical substance.

Over the past couple months I’ve been reading about budgeting, planning and a lot of personal finance stuff in general and one of the line items in some people’s budget I’ve discovered is pocket money. The concept itself isn’t new because most of us growing up got an allowance or pocket money from our parents. The concept is slightly different when it comes to what I’ve been seeing. The primary difference is instead of using your credit card or debit card you pull a certain amount of money out of the bank on pay day and that’s it this is your money for groceries, gas, and all sorts of little expenditures. You cannot pull any additional money out of your bank account, when that money runs out you have no more.

For me this pocket money is a mythical substance, not like dark matter which scientists are simply having a hard time catching. It’s a mythical substance because in our consumer world it takes a great deal of effort to limit yourself to only spending X$ per pay on stuff. My main reason for saying this is the case because we simply can’t leave home without taking our credit cards or debit cards for the just in case purchases or more importantly emergencies. Do I think it’s possible to simply not spend money that’s residing in your wallet? Of course but I think a lot of us (myself included) have been trained to think of the money in our wallets as expendable or worse yet already spent money.

My pay rolls around at the end of the month and I am going to try an experiment of sorts this time around. I am going to try doing the pocket money thing for my gas, food and entertainment expenses. Now just to be safe I’m only going to pull out half the money up front because if it starts to fail I still need to be able to have money in the bank account. This should take me to through to December 8th at which point I should still have money left over or be just about out. I’ll post the results of my experiment at that point. Here’s hoping that my thinking that pocket money is mythical can be proven wrong.

[tags]pocket money, cutting costs, budgeting, planning, spending[/tags]

One thought on “Pocket Money, the mythical substance.”

  1. I started doing this with my Christmas money and I can tell you that it’s SCARY! I tend to forget about it on the way out the door but then I’ll see something PERFECT for someone, under the amount designated but since I dont have the cash, I put it on my debit card. Now I have to go to the bank and deposit the OTHER money.

    It takes alot of discipline to leave your debit card at home. I’m hoping to develop it but it’s definately a work in progress.
    Good luck!

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