Life isn’t all about working. As normal human beings that we are, we all require a certain dose of fun every now and then. This can be anything from indulging in your favorite hobbies, eating at your favorite restaurant, and even going on a trip.
No matter how you define your type of—legal—fun, you need to make sure you can do it whenever you feel like it. There are many ways in which you can do this and many other reasons as to why this “fun money” is important. Let’s take a look at how fun money works.
Pay yourself first.
One of the first things you can do when you get a paycheck is to save some for yourself—otherwise known as paying yourself first. Paying yourself first is a way of investing in your own desires first. You can do this by saving money on every paycheck that will go towards your favorite activity. Likewise, this money can be saved for something serious as well, like a visit to the doctor, buying a property, or purchasing a new computer.
For instance, maybe you’ve been Googling “dentist Centennial, CO” more often for your dental care, an orthodontist, or maxillofacial surgeon. So, whether you need a new crown, preventive care, oral surgery, or simply have your dentist check your oral health or dental implants, then you should already have some money saved up for those oral care activities and other overall health services. Your savings can make the difference in the dental services you can get, the quality of the root canal you’re getting, and your dentist’s overall knowledge of principles of dental health.
Plan for a fun experience.
Moreover, you can save up for some fun experiences like taking a tour in a new town, buying a musical instrument, or purchasing the best affordable shoes online. Some people speak against buying things and instead go for “experiences” but what they forget is that these things make for an experience themselves.
A shoe collector will have their own great experience by admiring their closet full of sneakers, athletic shoes, or fitted footwear. Preferring to not go out with bare feet and instead splurge on their favorite brand’s new arrivals or athletic footwear is also a way to have fun. Every individual has their own definition of fun, and it’s their right to pursue it as long as it doesn’t hurt anybody.
Determine how much you need for fun.
In order to save some money for your type of fun, you will need to determine how much that fun thing is going to cost you. You can make a budget based on the frequency of how much you do this activity or incur these fun expenses. Give yourself a limit on how much you can spend each month on said activity and start saving towards it.
Have an emergency savings account.
It’s also important to establish a savings account in case you inadvertently or unwillingly go overboard on your expenses on any given occasion. These emergency savings will help you pay for any unexpected medical treatment you need to get or have a safety net in case you become jobless. Life happens, but it’s our responsibility to become as prepared as we can be to face any unexpected monetary expenses.
Save more money for retirement.
Lastly, it’s important to save for your retirement. Make sure you have a growing 401k from your employer or create your own retirement account with an investment account such as a Roth IRA. A Roth IRA will allow you to generally contribute six thousand dollars a year that will continue to grow until you retire. Having retirement money is of the essence as you do not want to live out your remaining days working to earn a living.
Life is meant to be enjoyed, so why not make some room in your budget for your present fun and your future fun. Start saving for yourself and your family so you can live a better life ahead.