Spending Money Disappearing

Three days ago I had $138 in my spending account, now I have $44! Since it’s my last semester here at UT, I have been going out to nicer places in Austin which also tend to cost more. I used to survive on $60 a month!

I believe in spending money, it drives the economy, but I also believe in spending within your means. Any money you bring in should first be subjected to a swipe off the top which goes straight to your savings, the rest you can spend.

My personal system for distributing income is currently:

  • %40 – Permanent Savings
  • %40 – Investment Account
  • %20 – Spending Account

With Bank of America I have automatic transfers that put the following amounts in my accounts each week:

  • Spending Account – $10
  • Investment Account – $60
  • Permanent Savings – $40

This all adds up to a decent amount of money every month, but it won’t be near enough for the real world in a few months! I will be opening up two more accounts very soon, so I need to redistribute my incoming money plan.