Beat the Winter Blues - Buy Something!

It's winter - and it feels like you're stuck inside a lot of the time, right?  Why not beat the winter blues by going out and buying something - go on, give yourself a treat!  I'm not kidding.  Buying something special is a great way to beat the winter blues.  You just need to be careful how you do it.

It’s important that we never forget what FORTIfi's MortgagePlan and M-Power Plan are all about. They're about more than just achieving financial goals. They're about putting lifelong saving and spending habits into place in your daily life. They're about creating a balance in your financial life. And having a balance includes having some money that is yours to enjoy.

So, beat the winter blues - have some fun with your money - just don't blow your budget.  Here's how you can make room in your finances to have some fun.

Four hints on having fun with your money now.

1] Set a clear limit on your “fun money.”
Spending money on yourself is never fun if you are not sure whether you can afford it or not. You need to have permission to relax  That permission comes from one place only - it comes when we have 100% confidence that we have enough money to spend on that particular item without going into debt. It comes when we know our bills are paid, our debts are being taken care of, we are putting money aside for savings, and there is a little bit left over just for us to enjoy.

So, the first thing you need to do is to go determine how much you can afford to spend on having fun. You might want to call this your ‘pocket money.’ But remember the key here - set a clear limit on the amount of pocket money you have to spend each month.

2] Take your fun money out in cash.

The easiest way of overspending is to use a credit card or Eft-pos card for all your spending. Sure cards are handy, but using them requires a level of self-discipline that's a challenge to most people. It's likely that all of us know the surprise of receiving a bill at the end of the month that's far higher than we expected. That’s why the safest way to spend money for fun is to withdraw it as cash and spend it as cash. This cannot be stressed enough! Set a limit to your spending money and keep to that limit by withdrawing it in cash. And, when that cash is gone, it’s gone - no more until next payday.

Set a limit to your spending money and keep to that limit by withdrawing it in cash.

3] Avoid “emotional” spending.
There is a simple reality that some people will have to accept about themselves - we all have things we do to relieve stress and to make us feel good. Some of them are positive, some of them are negative. For some people that stress reliever is spending. More and more New Zealanders now list ‘shopping’ as one of their favourite pastimes. That’s great if you stick to window-shopping or to your cash allowance. However, the way many people shop is governed more by emotion than level-headed decision making.

Only you can know if this is an issue for you, if it is, you need to take steps to ensure you don’t blow your budget on impulse.

4] For couples – share your fun money.
Many relationships have arguments over money. Often the arguing is over money that one partner has spent on something the other partner thinks of as overly frivolous or wasteful. The answer is simple; Divide your fun money in two and each receive an equivalent amount of pocket-money. And then, allow each other to spend the share of the money that is theirs, no questions asked and no negative reactions allowed. The money can be spent however the person whose allowance it is wants to spend it. After all, what one person thinks is frivolous another person will value.

So, go on - do it.  Beat the winter blues.  But do it wisely.  Don't just add to your debt.  Do it with in a way that makes you feel good about yourself because you haven't added to your debt.

Read the article from the FORTIfi Resource Centre: How does my credit card interest free period work?