Think about the last time you had a little extra money, whether it was a gift, paycheck, or tax refund. How did you spend the money? Were you satisfied with the way you spent it, and if you had that money again, would you spend it on the same things?
In the example above, this person anticipated receiving a hundred bucks as a birthday present from his parents. We can only guess what he intended to use that money for…paying off debt, saving towards a goal, or having a few more nice things.
It is important that you record these additional sources of income and include them in your spending plan, or they will be gone before you realize it. Look back at your spending over the last couple of weeks (see Dollar Tracker from Lesson 1). Were you surprised to learn where your money goes, or did it match the expenses you anticipated in Lesson 2? Unfortunately for this person, his parents took him out to dinner, and the extra income never entered into his cash flow. However, he still has a better understanding of what he can spend the next month.
Do you know how much money you really have?