A financial plan doesn't mean no fun: It's supposed to help you feel comfortable spending money on the things you love
If you're like most people, you probably think that having a financial plan means no fun. But we believe that shouldn’t be true! A financial plan is supposed to help you feel comfortable spending money on the things you love, knowing that you're also setting up your future self for success.
Here are a few tips for having a financial plan that doesn't sacrifice fun:
Focus on needle movers. The biggest expenses in your budget are the ones that have the biggest impact on your bottom line. These are the things you should focus on reducing if you want to save more money. Things like rent, car payments, credit card debt, and student loans. Of course, it's important to be mindful of your day-to-day spending as well. But you don't always need to sweat the small stuff, like the occasional latte or ice cream trip.
Invest in yourself. One of the best ways to increase your income is to INVEST IN YOURSELF. This could mean taking courses to learn new skills, learning a new labor skill, going back to school to get a degree, or starting your own business. When you invest in yourself, you're increasing your earning potential and making yourself more attractive to employers.
Increase your income. There are many ways to increase your income. It isn’t easy, but is possible and we’ve seen many clients do it. Such as getting a raise at your current job, starting a side hustle, or getting investment income.
Invest the difference. Once you've reduced your fixed costs, increased your income, and invested in yourself, you can invest the difference. This is a key for many people to building wealth over time.
Here's a real-world example of how to have a financial plan that doesn't sacrifice fun:
Let's consider you're a recent college graduate with a $30,000 student loan. You're making $50,000 a year at your job, and your rent is $1,500 a month.
You could cut back on all your expenses and live on a shoestring budget. But that's difficult for many people to sustain in the long term. Instead, you should focus on reducing your fixed costs, increasing your income, and investing in yourself.
Here are a few things you could do:
Refinance your student loan. If you have good credit, you may be able to refinance your student loan to a lower interest rate. This could save you hundreds of dollars a month.
Get a raise at work. If you've been performing well at your job, ask for a raise. You could also start looking for a new job that pays more.
Start a side hustle. There are many ways to start a side hustle, such as freelancing, driving for a ride-sharing company, or learning a skilled hand on job employers will pay you for.
By following these tips, you can have a financial plan that doesn't always sacrifice fun. You can still buy the latte, splurge on ice cream trips, and go on vacation. But you'll also be saving for your future and investing in yourself.
Here are a few additional tips for having a financial plan that doesn't sacrifice fun:
Make budgeting fun. There are many ways to make budgeting fun, such as using a budgeting app or game, or setting financial goals with a friend or partner.
Reward yourself. When you reach a financial goal, reward yourself with something you enjoy. This will help you stay motivated to keep saving.
Don't be afraid to splurge occasionally. It's important to have fun and enjoy life. So don't be afraid to splurge on something you really want from time to time.
Remember, a financial plan is supposed to help you feel comfortable spending money on the things you love, knowing that you're also saving for your future. So don't be afraid to have a little fun!