A Better Way to Manage Your Everyday Money - Book - Page 152
Stabilizing your allowance
You can change your allowance at any time. When starting to take control of your day-to-day
finances, however, it is very important that you stabilize your allowance as soon as possible. A
consistent amount being set aside to your Allowance ledger is a key element in managing your
household finances. How much you devote to your allowance determines the amount of money
available for expenses.
If you consistently have money left over each week, reduce the amount of your allowance. The
amount of the allowance decrease will be added to your net cashflow.
If you consistently run short of spending money each week, increasing your allowance amount
will work; however, the increase will take away from the money available for payments and
set-asides. Before increasing your allowance, look at possible ways to reduce your spending. One
way is to track your spending for a couple of weeks. Keep a record of every penny spent. This
will highlight any spending habits, of which you may not even be aware, that you could change
or stop altogether.
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