OKAY CHILL! Breathe in, breathe out and have a slice of your favourite guilty pleasure. ‘Wait, what? I thought that was doing me more harm than good?’. Sometimes it is okay to take the guilt out of those guilty pleasures. The point of saving and budgeting is not to live like a pauper and miss out on quality life experiences – that is extreme, even for us!
It’s about balance, a compromise if you will. Budgeting for a little leg room for those things we love to do every week, or every month, is not going to kill us and will probably help keep our sanity intact. When we know exactly how much we want to be spending; and that we have a certain amount of money to spend on whatever we want every month - it helps take the guilt out of those pleasures we love.
OMG an indulgence allowance?!? Yes please! That has a sweet ring to it. Here are our top reasons why it is necessary to have a budget for fun money:
You’ll end up spending it anyway – if not more: When we want something, we want it. Our eyes change, our breathing gets heavy and we charge for what we want. There is no stopping us. Once it is done, we often don’t know what came over us – raise your hand if this has ever been you… Not having a budget set for indulgence often leads you to spending more than you initially set out on those guilty pleasures. This is why budgeting for it will actually prove to be more productive for those long-term goals and avoid that boom-bust mentality.
You are not spending everything you have: Those long-term goals do not waiver, they are still being achieved. Remember, this is a fun money budget, therefore you are allocated an amount every week or fortnight to spend on WHATEVER you want. The rest is locked away for bills or those important long-term boxes we want to tick. Just knowing that gives us the peace of mind we thrive on to move forward and to live our best life.
We earn to enjoy – in moderation: Being frugal can be EXHAUSTING. Having a small budget can take the pressure off and can serve as a reward for the progress you have made in achieving your goals. There is so much value in remembering that life needs to be taken lightly sometimes. We are here to live and laugh, not merely exist and mourn. As long as we monitor this with moderation and control, having a bit of fun is important for our overall well-being and state of mind. It is okay to let loose!
‘Okay so how much fun money should I allocate for myself each month?’. This is where a Financial Adviser comes in. The structures we put into place and the budgeting process we implement are designed to create a peaceful and harmonious balance between your financial goals and your day to day happiness. The moment we do that, there is no guilt when you do indulge once in a while. Budgeting to allow for an amount to spend on those pleasures will allow us to stay focussed on those long-term goals whilst we don’t have to completely compromise on what we enjoy.
Contact us today so we can help you smash those goals, while still having a little fun!
Kora Drage is an Authorised Representative of Financial Wisdom Limited ABN 70 006 646 108, AFSL 231138. The information contained in this article may contain general advice. It does not take into account your financial circumstances and objectives. You should consider talking to a financial adviser and read the relevant Product Disclosure Statement (PDS) before making a financial decision. Any views and opinions provided in this article may not reflect the views and opinions of Financial Wisdom Limited.