Alright I’m back from vacation and I got to be honest my timing could not have been worse. The reason I took off for the week was because I had reading week from school and I was ready to lose my mind with both school and work full time. I pretty much work hard all year so when I have any time off from school I try to use it to recharge my batteries. Even though I did recharge my batteries while laying in the sun all week I got food poisoning near the end of the trip and to make things worse I forgot how much work I had waiting for me upon arrival back home. School is going to keep me extremely busy the next few weeks, but despite that I will still post regularly. I want to apologize to anyone that has tried to contact me in the last week or so. I am now officially back full swing so if you wish to contact me then please feel free to do so.
As a result of meeting some very interesting people and having some thought provoking conversations I have decided to write about a subject that I discussed a few times over the last week. Is spending money a good way to reward yourself? The question is so subjective that no one can possibly come up with a conclusive answer. In my own opinion I will say that the answer is yes. If you care to know why I feel this way then please read my list of reasons.
1. Motivational tool. Some of us, in fact probably almost all young people can’t save money unless they see some sort of reward. One easy trick is to try to save 50% (just a rough number that depends on your living conditions) of your pay while still living at home. From that 50% you can tell yourself that you will spend 10% quarterly or semi annually in order to reward yourself.
2. Results are visible. Whether you reward yourself by travelling or buying some new gadget, the results are clear and visible. Many times when we are saving our money the fact that we do not see clear results it has us questioning the purpose of saving.
3. Makes saving money fun. Saving money for retirement and setting up emergency funds may be extremely boring for most young people. By setting up your savings so that some of your money is used for “fun” purposes such as going out for a nice dinner or visiting that part of the world that has interested you for many years. I don’t know about you guys but ever since I started rewarding myself with vacations I have become more motivated to save more of my income.
Before I close today’s article I would to give so much needed thanks to a few other personal finance bloggers that linked to me while I was away.
Green Panda Treehouse was kind enough to link me in her weekly roundup last week.
Jeff Rose of Good Financial Cents also linked to me in a roundup of his.
John at Passive Family Income featured a guest post of mine last week when I was away which is available here.
A great big thanks goes out to the guys over at College Finance 101. They are both very intelligent people that run a highly respected blog that gears to pretty much the same audience as Studenomics. I have been following the blog for quite a while now and I was honored when they linked to Studenomics last week.