Should An Average Adult Have An Allowance?

By: | 06/09/2021 05:46 PM ET

Should An Adult Have An Allowance - If an adult is planning to save money, they should get a weekly allowance to stay on budget. This is normal and should be a positive routine in an effort to remain financially stable.

The first step is to sit down with a pay stub and all your bills. You have to know exactly how much money you receive each month and how much you need to spend to cover your fixed expenses, such as rent/mortgage, utilities, car payment, and so on. Keep a calculator nearby and a piece of paper to track how much you are subtracting and where it’s going.

When you’ve “paid” all your fixed expenses, you’re left with the extra money. Decide how much money you’d like to save and invest every month, subtract that too from your balance and put it in a separate category on your paper. Subtract any other categories you think are necessary (food, for example).

What you are left with is the amount of money you have for “extras”. The important part is to be honest with yourself about what is an extra expense. Now, take all the money you’ve budgeted and put it in the bank. This is money you need, this month or in the future, so it doesn’t apply to your allowance.

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