Allowance ?

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
Allowance ?
4
Tue, 11-09-2004 - 12:18am
As you all know, i am slowing building up our Freedom Account. I have a few sub-accounts already implemented. However, i would like to add a sub-account for clothing (for myself, husband, and twins). How much would you all say would be appropriate for me to put each month toward that account? In addition, to one for gifts.

Any input would be greatly appreciated.

MYM

iVillage Member
Registered: 05-19-2004
In reply to: mymartes
Tue, 11-09-2004 - 10:02am
Hi! Do you put each of these sub categories in envelopes or a bank account? Either way, I think that's great! I don't have the self control to put money in envelopes- it would be gone. When dh gets paid I have to actually deduct from and leave the written checks in our checkbook before the bill comes so I don't spend it!! (Or send it too cc and not have enough for other bills!!)

Luckily for us, our kids b-days fall at the turn of seasons so relatives buy them lots of clothes for b-days and Christmas too. Dh and I don't buy TOO ;) many clothes except I use my Old Navy card and pay it off immediately. (They send you bucks back for every $100)and I find clothes on sale there are even cheaper than Walmart or Target. (Just bought ds a long sleeved shirt for $2 and very thick coat for under $20. Tee's for me were $1.97!!!!)

Anyway, off my Old Navy addiction, I would like to start a few categories too (in the bank) as soon as we get debt paid off and build a new house in a few years. I would like to put $300/mo in a "strict savings" and $200/mo. in a "spendable savings" which would cover oil changes, high gas bills, clothes, b-day gifts etc. We always get an extra pay around Nov. or Dec. so that's what I use for Christmas if I'm not already done yet.

Congrats for building up your freedom account!! I hope I can do it too- I'm just too obsessed with paying off debt right now- but I want to be where you are someday soon! I don't even know if I answered your question- Oh yeah, I'd want to have $200/month for everything- so maybe $75 would be good for just clothes? $50 for gifts? It depends on you- where you shop, how much you spend on gifts etc.....



You're doing great!! Nicki

iVillage Member
Registered: 02-19-2004
In reply to: mymartes
Tue, 11-09-2004 - 12:43pm
I think the best thing to do is go back through your checkbook for the last year, or your cc statements and see what you have spent in clothing stores. I keep my checkbook in Excel and I have a category column, so when I buy clothes I enter the date, type of payment (debit), payee and amount, and I also enter "clothing - me" or "clothing - dd" in the category column. That way I can go back later and see what I've spent over time.

I budget $50 per month for me and $20 per month for my 4 year old dd for clothes (I don't spend this every month, sometimes I save it up over a period of months and then buy).

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Avatar for mymartes
iVillage Member
Registered: 03-26-2003
In reply to: mymartes
Tue, 11-09-2004 - 1:13pm
Nicki,

I followed Mary Hunt's advice on the freedom Account. We opened another checking account at the same bank we have our regular checking and saving. However, this checking account is not linked to our atm card. Under our names and address (on the check), I have "Freedom Account". In a three ring binder, I have titled each page with the name of the sub-accounts.

Since we are building our first home, i have created a sub-account for furniture. The house will be built in a gated community with security guards. We would have to pay an association fee. Therefore, i have created a sub-account for that as well. We owe a timeshare. So i have a sub-account for the maintenance/tax fees. We will need a minivan when we move into our new home. Therefore, i have created a sub-account titled mini-van. I have also created a sub-account for home insurance. Apparently, before closing you need to show home insurance policy (premium paid in full for the first year). In total i have a little over $700 in our freedom account. I have been making it a habit to transfer a certain amount of money into our freedom account, when my husband gets paid.

MYM

Avatar for mymartes
iVillage Member
Registered: 03-26-2003
In reply to: mymartes
Tue, 11-09-2004 - 1:55pm
Firstamendment,

Thanks for the advice. However, my husband and I (especially me) haven't bought ourselves much clothes in the past year. Every few months, the kids are needing a new pair of shoes/sneakers, pajamas, and/or other clothing. It would be difficult for me to look back a year. Besides, I don't keep our c/c statements that long. I usually shred them each month (after i mail payment).

However, i am thinking that maybe $100 for husband and I and $40 for the kids (boy/girl, 3 years old on the 25th), would be a good start.

Thanks again.

MYM