Welcome back to another Budget Tip Tuesday post! Today’s budgeting tip is all about spending cash. This is one of the most life-changing aspects that I adopted for my own personal budget, so I preach it.

Each payday (which for me is every 2 weeks) I set aside a specific amount of money that will only be used for extras and fun things. For me, I choose to set aside $100 every 2 weeks. So this gives me $50 a week, or however I choose to stretch that money out over the 2 week period. This amount isn’t what will work best for everyone, but for me this works best for now, so just choose your amount for what best fits your budget currently.

The KEY factor here is that this $100 is taken out of the ATM the very day I get my check deposited into my account and the CASH is put into my wallet. This works really well because you don’t have to worry about keeping up with the math every time you do something with the money. You will have it all in your wallet, and when it is gone, it is gone.

For me, I usually spend this money on things like dining out for lunch with friends, picking up a dessert treat somewhere like Starbucks, getting a pedicure, buying something fun from Target (dollar spot, woohoo!), buying a new shirt from TJMaxx or Old Navy, or something else that may come up spur of the moment like a food truck or Girl Scout cookies. Obviously you guys are seeing a trend here with me spending extra money on food items! haha. I place value on enjoying good food, so for me that’s a fun choice. You may really enjoy craft shows or a festival, and could spend some fun money there!

Just make sure to remember that this is your FUN, extra money. Everything else like monthly bills and expenses for gas and groceries should be budgeted separately in their own categories for the amount you or your family need. This spending cash is meant to give you some freedom each pay period to enjoy your hard earned money and not FEEL like you are on such a tight budget that you don’t have any fun.

And the best part is, it’s still part of your budget, because you did it on purpose! So reward yourself with how you spend this money!