Try Living on an Allowance

When did you last get an allowance?

Grammy award-winning singer-songwriter, Ed Sheeran, has a net worth estimated to be $200 million. Yet, he says, “I don’t spend much money. If I had all my money in one account I would spend all of it, so I get an allowance.” Now, that’s pretty smart! In fact, it’s basically how a budget works. Used correctly, it shows you what to do with your money before you can spend it on yourself. You give, save, pay your bills, and invest. Then you get your allowance, your spending money for a pay period. It gives you a certain amount of freedom to spend as you desire. If you convert it to cash, research shows it will last even longer. 

An allowance offers several advantages. First, a set amount makes it easier to track. You have to exercise discipline in order to prioritize spending. This means saying goodbye to impulse purchases. You learn to delay gratification – especially if there’s something you want to buy in the future. This means you may have to say “No” to certain things. Going out with friends, buying new clothes, or taking a weekend trip may have to wait until you have enough allowance saved to afford it. Proverbs 21:20 in the Living Bible says, “The wise man saves for the future, but the foolish man spends whatever he gets.” Choose to be wise. You have nothing to lose and a lot to gain! After all, Ed Sheeran says it works for him. 

Does credit card debt prevent you from having an allowance? Then I recommend Christian Credit Counselors. They’ll create a debt management plan specifically for your needs. For more information call the Crown Helpline 800-722-1976 or visit online at crown.org/ccc.