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.