“Free Money” Frenzy!
Have you ever found $10 in the bottom of a purse you haven’t used for a while, or a $20 note just lying in the street? Maybe you cleaned out your car and gathered up $8 in change. No matter what the situation, when I find money I didn’t know I had, I’m happy and may even feel like I’ve won the lottery. I’m so pleased with finding even a relatively small amount of cash that I’m not sure I could stand it if I won $1 million! I’d sure like to try though….
Image by Martin Howard
Anyway, if you do happen to find a little extra cash, what do you do with it? If you’re like me, you sort of see this as “free money.” It’s money you didn’t know you were going to have and weren’t planning on using for any particular thing, so you may think you can just use it freely. Maybe you’ll stop by for milkshakes on the way home, or buy yourself a new sweater, depending on how much money you found.
But just because you end up with money you weren’t expecting to have, that doesn’t mean it is worth less than money you earn! It shouldn’t just be thrown away on whatever whim you have at the moment. If you are on a tight budget, any extra money you have can be used to help with essentials like food and utilities.
I remember a time when I had just started a new job and was a little short on cash as I waited for my first pay check. A friend gave me $100 anonymously, just because she knew I was having a hard time and could use the money. Now, even though I really needed that for essentials, at first I imagined the fun things I could do with it. Take the kids to the movies, buy myself some new clothes, go out to eat at our favourite restaurant…
I could find plenty of great ways to spend that money, and since it wasn’t part of my budget already, why use it for boring stuff? Well, as it turned out, I used the money for groceries and was glad I did. That “free money” met a need in my life at that time. Had I run out and spent it on something frivolous, I would have regretted it later.
There are many examples of how we choose to spend this type of money, and even sometimes create “free money” by rationalizing things in our heads. Here are just a few “what if” scenarios.
Let’s say you go shopping for a nice shirt for work and you find exactly what you are looking for. Even better, the item you want is on sale. Regular price, $45, sale price, $35. At this point, do you:
- Just buy the shirt and nothing else, happy with the money saved?
- Think to yourself, ‘Hey, I have $10 to spend now,’ and hunt down another item?
- Or, buy the shirt and then go spend the $10 on a snack or fast food?
How about when you inherit money from someone? This kind of “free money” can range from just a little to quite a bit. What would you do if you inherited $10,000 from a relative? Would you:
- Put it toward paying off your mortgage or other debts?
- Start planning that dream vacation you’ve always longed for?
- Or go out and buy that super-size television and let the kids buy some toys?
It’s always nice to save money on a purchase, or end up with money you weren’t expecting. It’s especially nice if you are on a tight budget. Every once in a while, we all need a bit of cash to just do whatever we want. That’s all right as long as you realize that you can choose to blow the money, but you can also choose to use it wisely on a necessity instead of a luxury.
Making that decision is fine at times, but there is a time and place for everything, and sometimes when we save money or get extra money, we need to use it carefully and wisely. That $20 you found may be just enough to buy a bit of gas to hold you over until your next pay check. Or if you saved $10 on a shirt, put that money aside to be used for other necessities as they arise.
“Free money” can put a smile on your face and some pep in your step, but always keep in mind the value of a dollar and realize what you are doing before you rush off to spend your new found cash.
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Category: Budgeting
