Make sure you read the introduction prior to reading this post.
Week 4 brought us an unexpected surprise. We paid off our credit card debt and we did it a month early! So, we celebrated by breaking one of our cardinal rules for this experiment. I’m OK with the fact that we broke the rules because 1)it was worth it and 2)it illustrated one escapable fact…life happens.
No matter how carefully we plan or budget, life sometimes gets in the way. We usually prepare for the bad parts of life–car breakdowns, home repair, doctor visits or job loss. But rarely do we prepare for the good parts of life–the birthdays, the baby showers, the occassional lunch with a friend. How many people remember to put car repairs as a budget item but forget gifts or haircuts? Why is that? Why are we so consumed with preparing for the worst that we never prepare for the best?
Here’s my answer: More people should adhere to Dave Ramsey’s “blow money” budget item. Except I don’t like the term “blow money”; it conjures up images of many things that have nothing to do with (legal) money. So, I’m renaming it to a “good times” emergency fund. I think having a “good times” emergency fund should be the new prudent financial “thing to do”. I’m not talking a separate vacation fund or new clothes fund; I’m talking a general good times emergency fund that can be dipped into and used for whatever and whenever the mood strikes. I think that people would be a lot more relaxed if they knew that there was a pot of money that they could use to treat themselves. This money wouldn’t have to detract from any other budget item and it would bring peace of mind. And it would make sure that we celebrate good times (come on!), not just bad.
If this week taught me anything it’s that it’s just as important to prepare for those good times as well as the bad. The good times cannot be overlooked. They are what keep us going; they are what give us the drive to pay off our debts or lose weight. And it is just as important that we prepare for those times.
