Wednesday, November 17, 2010

"Mad" money

I have read several commentators talk about how to do a household budget, and quite a few talk about the concept of "mad" money, that is, having a small cash allowance built into the budget to do whatever. I think this is quite important. No matter how dire your situation is, and how much you are trimming expenses, it is necessary to be able to keep one's sanity and enjoy a tiny bit of whatever it is that makes you giddy. All this must be in moderation (and hopefully legal) and in keeping with one's own financial situation.

For me I keep about $20 in cash each week, mainly to feed my caffeine addiction. I have to bring a Tim Horton's large coffee to work, no matter what. It's not something I am willing to give up. I have heard people expostulate on the total cost of buying coffee in a shop versus brewing it at home, I know there is a cost involved, and I don't care. I truly don't have many vices, I don't smoke, I don't buy designer labels, I very rarely drink, etc. Buy I really truly love my coffee, and it doesn't seem like such a bad habit to have. (at least my vice is fairly cheap)

My other little vice is magazines. I love to read, and I don't have a lot of time with working full-time and caring for two young children to read novels, so magazines fit the bill. I have 3 subscriptions, each fairly inexpensive (total cost for all 3 each year might be $60), and in keeping with my "cheap vices" mandate. For about $5 monthly I get hours of enjoyment, and some quiet time to myself.

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