How can I enjoy the money I earn without overspending?

Introduction:

In this article, we will discuss how to enjoy the money you earn without overspending. We will provide practical tips and suggestions to control spending and enjoy your financial life in a smart and balanced way.

How to Enjoy Money Without Overspending:

After many years of financial struggles, it can be difficult to allow yourself to enjoy the money you earn. But what if something happens and you spend all the extra income you have? In reality, no one can predict the future, but know that life is not just about enduring; you should also enjoy it. This means you should take some of the money that you and your partner earn and spend it on things you desire, whether it’s a vacation or a pair of shoes you’ve been dreaming of.

Setting Up a Budget:

However, you don’t want to spend all of your paychecks without saving some money in savings and investment accounts and ignoring other future goals. Creating an emergency fund is one of the ways that can make you feel more comfortable about using that discretionary money for the things you want. An emergency fund helps you prepare in case one of you gets sick, loses a job, or if there are other unexpected expenses that impact your finances.

Budgeting Rules:

One of the quickest and simplest ways to budget is to follow the 50/30/20 rule. You keep half of your net income for your needs like rent, groceries, and utilities; 30% of your income for your desires like takeout food; and the remaining 20% goes to savings and other financial goals. Remember that you can always adjust these numbers in a way that works best for both of you.

Achieving Financial Goals:

For example, let’s say you want to save more money for something bigger like a house. Maybe you’ll allocate less money to the “fun fund” and more money into savings. Or perhaps you want to earmark some funds for investing. In either case, sit down with your partner and discuss your financial goals, whether they are big or small. Then be honest with each other about any purchases you’ve wanted to make but perhaps couldn’t because you didn’t have the funds. Include those purchases or experiences in your budget too, and set aside a certain amount of money each month for those items or experiences. It’s not just about enjoying yourself – in fact, you are more likely to stick to your budget if you don’t make it too restrictive.

Be Kind to Yourself:

What you are doing is a mindset shift in your approach to money and moving away from that scarcity mindset. Don’t be too hard on yourself if you find it challenging, or if you have money worries that need to be addressed during this process. Remind yourself that your past is not your present, and rely on your budget for the future. If you do this, you will be able to spend your money without guilt, while also building an emergency nest egg and planning for your future.

Conclusion:

In the end, you should remember that life is not just work, payments, and bills. You should enjoy the things you want and appreciate the money you earn. However, you should also be wise in your spending and plan your financial future. Following budgeting rules and creating a plan to achieve your financial goals will help you enjoy the money you earn responsibly and in a balanced way.

Good luck!

– Christine

If you have any questions about money, Christine is here to help. Ask a question anonymously and she may answer it in a future article.

Sources:

– Consumer Financial Protection Bureau. “A Basic Guide to Building an Emergency Fund.”

– Consumer Reports. “How to Set a Budget.”

– Consumer Financial Protection Bureau. “My Spending Rule to Live By.”

–
Consumer Financial Protection Bureau. “Setting a Smart Saving Goal.”

Source: https://www.thebalancemoney.com/how-can-i-enjoy-the-money-i-earn-without-overspending-5323622