I am very lucky to have a chunk of disposable income every month. However, I want to invest and save most of it, because I recognize that disposable income can quickly disappear given the right circumstances.
My problem is a time old one, that I struggle with material desires, and how easy it is to treat it as play money.
Does anyone have any advice how to offset those impulses or otherwise make it easier in the moment to check myself?
I have a line in my budget called “disposable” which is a fixed amount per month that I’m perfectly happy to spend on me. It covers entertainments, videogames, books, anything that isn’t strictly necessary, but is enjoyable.
I keep this largely the same every year, not even adjusting it for pay rises etc. It’s a non-negotiable amount (unless things get really dire!) and helps me to understand what I have available to “waste”. Keeping it at a static amount helps to divert any extra into savings and investments, and helps me to avoid lifestyle creep.