🎈 Happy Finance Friday, everyone! Today, we’re talking about the most exciting part of the budget or financial plan. Let’s talk about Guiltfree spending aka fun money$$. This part of the plan is 20 to 35% of your income.
What is guilt free spending aka fun money? Guilt-free spending, or fun money, is the portion of your budget that you set aside for the things you enjoy. It’s money you can spend without feeling bad about it. This is the part of your budget that lets you have fun and enjoy life. Why is Guilt-Free Spending Important? Keeps You Happy: Having fun money means you can buy things or do activities that make you happy. This could be going to the movies, eating out, or buying new clothes. Since we live full time in an Rv this is the biggest part of our budget. In our family we have a f**k it lists. On our list are springs, beaches, breweries and any fun activities, especially if there is karaoke. Prevents Burnout: If you only save and never spend it on fun, you might feel tired and stressed. Guilt-free spending helps you relax and enjoy life, which is important for your mental health. Motivates You: Knowing you have money to spend on fun stuff can motivate you to stick to your budget. It’s a reward for managing your money well. How to Plan for Guilt-Free Spending Set a Percentage: Decide how much of your income will be your fun money. A good range is 20 to 35%. For example, if you make $1,000 a month, you can set aside $200 to $350 for guilt-free spending. Stick to Your Budget: Make sure you don’t spend more than your fun money budget. This way, you can enjoy your purchases without worrying about your other financial goals. Enjoy Responsibly: Spend your fun money on things that truly bring you joy and satisfaction. Think about what makes you happiest and focus on your spending there. Examples of Guilt-Free Spending Entertainment: Movies, concerts, or video games. Dining Out: Enjoying meals at your favorite restaurants. Breweries or beaches. Hobbies: Spending money on your hobbies, like painting, gardening, karaoke or sports. Shopping: Buying clothes, gadgets, or books. Guilt-free spending is an important part of a healthy financial plan. It allows you to enjoy life while staying on track with your money goals. By setting aside 20 to 35% of your income for fun money, you can have the best of both worlds: financial stability and a happy, fulfilling life. So go ahead, spend wisely, and enjoy your guilt-free purchases! Well, this is our last blog in this series. I hope you have been able to get some good information over the last few weeks. But if you feel stuck and have no idea where to start, I can help.
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Welcome back to "Financial Friday," everyone! Today, we’re talking about how to Wisely Invest 10% of Your Income in 2024: Financial Assets and Self-Improvement
Investing a portion of your income is one of the most effective ways to build wealth and secure your financial future. In 2024, dedicating 10% of your income to investments can yield substantial returns, both financially and personally. Here’s how you can strategically invest in financial assets and yourself to maximize your gains this year. Please keep in mind that I am only giving out suggestions and that I am a life coach not a financial professional. Seek advice from a professional before investing any money. Investing in Financial Assets Stocks and ETFs The stock market has historically provided strong returns over the long term. Investing in individual stocks or Exchange-Traded Funds (ETFs) can help diversify your portfolio. Research shows that there is a growth in 2024, in things like technology, healthcare, and renewable energy. Use platforms like Vanguard, Fidelity, or Robinhood to start investing. Cryptocurrency Despite its volatility, cryptocurrency remains a popular investment option with the potential for high returns. Consider allocating a small portion of your investment budget to established cryptocurrencies like Bitcoin or Ethereum. Use reputable exchanges such as Coinbase or Binance. Real Estate Investment Trusts (REITs) REITs offer a way to invest in real estate without the hassle of managing properties. They provide regular income through dividends. Start by looking for REITs that focus on sectors with high demand, such as healthcare facilities, residential housing, or commercial properties. Index Funds Index funds offer broad market exposure, low operating expenses, and consistent performance. Invest in index funds like the S&P 500 or Total Stock Market Index through brokerage accounts or retirement accounts like IRAs. High-Yield Savings Accounts and CDs These are low-risk options that provide a steady return on your investment. Do your research or get help from a financial advisor to Compare rates from different banks and online financial institutions to find the best returns. Investing in Yourself Education and Skill Development Enhancing your skills and knowledge can lead to better job opportunities, higher income, and personal growth. In the long term investing in yourself can have a huge impact on helping you get out of debt and add to the savings in your plan we talked about last time. Enroll in online courses, workshops, or certification programs related to your field. Websites like Coursera, Udemy, and LinkedIn Learning offer a wide range of courses. Health and Wellness Investing in your physical and mental health can improve your quality of life and productivity. Allocate funds for gym membership, yoga classes, healthy food, or mental health resources like therapy or meditation apps. Networking and Professional Development Building a strong professional network can open doors to new opportunities and career advancements. Attending industry conferences, join professional associations, or participate in networking events. Looking on different site like meetup and Eventbrite it is where you can find different events. Hobbies and Passions Pursuing your interests can provide a sense of fulfillment and creativity. Invest in materials or classes for hobbies like painting, music, writing, or any activity that brings you joy and relaxation. Personal Finance Education Understanding personal finance can help you make informed decisions and achieve financial independence. Read books, listen to podcasts, or take online courses focused on budgeting, investing, and financial planning. Making the Most of Your 10% Investment To effectively use 10% of your income for investing, start by assessing your financial goals and risk tolerance. Create a budget to ensure you’re consistently allocating this percentage towards your chosen investments. Diversify your investments to mitigate risks and maximize potential returns. Regularly review and adjust your investment strategy to align with your evolving goals and market conditions. Investing in both financial assets and you can create a balanced and rewarding approach to building wealth and achieving personal growth. In 2024, let your money work for you while you invest in becoming the best version of yourself. |