"January is a hard month, making it more tempting than ever to indulge come payday. But how much should you budget for discretionary spending? Once the mortgage and utility bills are sorted, food is on the table, kids' activities are covered and the car loan is paid each month, it's OK to spend some money on a new coat, right?"
"Once the mortgage and utility bills are sorted, food is on the table, kids' activities are covered and the car loan is paid each month, it's OK to spend some money on a new coat, right? But how much exactly? Money experts weigh in on what they believe is the right amount of splashing out each month - and you might be surprised to learn that many believe life is for living as well as for being sensible."
January often increases temptation to overspend when pay arrives. After fixed expenses—mortgage, utilities, food, childcare, and loans—are covered, allocating funds for discretionary purchases can be reasonable. Discretionary budgets should match individual circumstances and balance saving and debt repayment with occasional treats. Common methods include a fixed monthly allowance or using a percentage of income for splurges. Prioritizing essentials preserves stability while modest splurges support morale and quality of life. Setting clear limits and planning for one-off purchases prevents impulse overspending and helps maintain long-term financial goals.
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