After you have set aside 10 percent of your income for the future, next you have to set aside 10 percent solely for “play”. This may be the first time you come across such a suggestion and you may find it hard to comprehend. Yes, the 10 percent of your income is for you to “blow away”!
One of the biggest secrets to managing money is balance. On one side, you want to save as much money as possible so you can invest it and make more returns. On the other side, you need to put another 10 percent of your income into a “play” account. Why? The reason is simple; this is part of man’s holistic nature. You cannot alter one part of your life without affecting the other. Some people are too rational and they save, save, save and while their logical and responsible self is fulfilled, their inner spirit whithers away. As the saying goes, “all work and no play makes Jack a dull boy.”
On the other hand, if you spend, spend, spend, not only will you never become rich, but the responsible part of you will eventually create a situation where you won’t even enjoy the things you spend your money on, and you will end up feeling guilty. The guilt will then cause you to unconsciously overspend as a way of expressing your emotions. Although you might feel better temporarily, soon it’ll be back to feelings of guilt and shame. It’s a vicious cycle, and the only way to prevent it is to learn how to manage your money in a way that works.
Your play account is primarily used to nurture yourself – to do the things you wouldn't normally do. It’s for the extra special things like going to a restaurant and ordering a bottle of their finest wine or champagne.
Action Plan # 1
Open a play account or have a play jar in your home where you deposit 10 percent of your income. The rule here is that it must be spent every month. That’s right! Each month you have to “blow away” all the money and allow yourself to “feel” rich. You need to reward yourself for working hard and so it is okay to “play” hard and have lots of fun with it. It makes managing money a more interesting activity to do.
Client :Springfield consultancy SDN. BHD.
Illustration of Springfield Newsletter 2008/ Issue 18
