I have always emphasized that a budget doesn’t stop us from spending, rather it guides how we spend our money. Now, this is the issue some spontaneous people have with budgeting; spontaneous people do not really like to be guided by a fixed plan, they love flexibility and the ability to impulsively buy whatever catches their fancy. Well, if you are a spontaneous person, you can still put your finances in order. This is why it is called personal finance; you can curate it to fit your personality.
Here are three tips to help you combine both putting your finances in order and enjoying the dynamics of your personality.
Create a large miscellaneous allowance- For someone who spends spontaneously, it is only reasonable that you create a budget with a large allowance for miscellaneous and spontaneous spending. I will also advise that when you create your budget, you give attention to your priority needs, after which you can apportion a sizeable amount for spontaneous spending. This way, you won’t feel guilty for spending impulsively because you have covered your important needs.
Set your limits- As much as you want to have this liberation, you can’t totally take away discipline from financial literacy; you still need some form of control when spending. If you have carried out the first step above, you need discipline not to spend beyond your allocated allowance for spending. It takes discipline to know that after that allowance is used up, that’s all for spontaneous spending that month. Also, as a spontaneous spender, it shouldn’t be everything that catches your fancy that you should buy. It is advisable that before making a purchase, try pausing a bit (for a day or so), and still check if you desire to make that purchase. At times, after a pause, you’d realize you don’t really need that item. This way, you’d be able to minimize your regretful spending.
Give priority to your savings and investment- Like I always preach, save and invest before you spend. If you decide to do the latter first, it will be almost impossible to have anything left to save/invest. To be financially literate, even as a spontaneous person, you should allocate money to your savings/investment first before you start spending, and you should also exercise discipline not to dip into your savings/investment to cover your spontaneous spending.
I hope these three tips will help you to still be financially literate as a spontaneous person.
To your financial independence and freedom!