Trick I use when I make unexpected money

Posted at 8:58 on Thursday August 18, 2005 | Filed Under Saving

Here's a trick whenever I make some unexpected money.

I've had a lot going on lately, so I've been having to transfer money to a bunch of different accounts. Sometimes I'll "borrow" from one of my accounts and promise to pay it back to myself, etc.

Anyway, I made some unplanned money in the last couple of weeks, which was basically exactly the amount I needed to pay back one of my self-loans.

But here's the thing: Instead of paying it all back, whenever I make money that I didn't expect (win a bet with a friend, tax refund, bonus, etc), I always use part of it for fun. Always!! This way, I keep motivating myself to do weird, offbeat ideas that may result in some kind of reward.

Anyone who reads this site knows that I'm not the kind of person who squirrels away all of my money for "some day" in the future. I think we probably all know someone like that--someone you could charitably describe as The Cheapest Goddamn Person in the World. Don't be That Guy!! Pay yourself back for creating your good luck.

I think in this case I took about 15% and I'm going on a trip with it. So imagine the ways you could reward yourself next time you run across some unexpected money.

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This is a blog on personal finance (banking, saving, budgeting, and investing) and personal entrepreneurship.

It's for students, recent graduates, and other young people.

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Ramit Sethi

I'm a recent graduate of Stanford, where I studied technology and psychology. Now I'm the co-founder & VP of Marketing for PBwiki, a wiki startup in Silicon Valley.

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