I find myself daydreaming about money quite a bit. It’s not so much about the money I have, but it’s about the money I don’t have…yet. Of course, if you add in my work bonuses and my lottery winnings I’m doing quite well for myself. Well no, I haven’t actually earned these bonuses yet and but I’ve been playing the lottery for a whole three months ...
Hey I love “Friends” and I remember that funny episode! But I agree that taking financial advice from a sitcom is not a good idea!
I have fallen for the trap of budgeting for extra expected money, only to find out that I wasn’t getting as much as I thought- or any at all.
This is especially true with rebate checks. I’ve boughten larger items with the promise of a rebate (i.e. a computer) and then I’ve budgeted that rebate in to help pay for the item when the credit card bill arrives. But guess what- it NEVER comes in time! Now I just figure that the item I am buying is the cost I paid- not the cost after rebate. And when the rebate comes eons later, it’s just some extra fun money.
It’s just like counting your chicks before they hatch.
This can be especially devastating if you have received large bonuses in the past when things at the company were good and have adjusted your spending to rely on the bonuses. I’ve seen this happen to a number of people.
I admit that I do this, but I think many times you have a pretty good idea of what you will receive. I also don’t allocate this money as essential, but as an added benefit to my retirement savings which is a lot different.
Putting all this money toward retirement or emergency fund is a great way to build those. So many people use this type of money as play money when they get it. I agree – never expect it, but when it does arrive, already have a plan in place on how you are going to use it.