Dear Dave,
Should you budget for mad money, or just carrying around cash, when you’re trying to get out of debt?
Aurora
Dear Aurora,
What really matters is the amount of mad money you allow yourself to have. Everyone needs a little pocket money. It’s probably not going to throw you off too much if you put $10 or $20 in there. But $100 or $200? That’s a bit much when you’re scrimping, saving and supposedly working hard to get out of debt.
Think of it as a safety valve, Aurora. Everyone needs a break and a little fun now and then. Whether it’s grabbing lunch out, or going to a movie once in a while, you need to relax and let off little steam.
Just make it part of your regular monthly budget, and stick to the amount. Little things like this will help keep your total money makeover moving in the right direction without wearing you out!
—Dave
* Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books, including Smart Money Smart Kids. The Dave Ramsey Show is heard by more than 8.5 million listeners each week on more than 550 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.