Step 8 of 12 to Financial Wellness: Know When and How to Indulge

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Achieving financial stability means understanding when and how to indulge responsibly. If your bank account only covers next week's bills and payday is still weeks away, it might be wise to hold off on that impulse purchase. However, once you establish a solid financial foundation, you'll have the tools—like budgets and savings accounts—to set aside money for those well-deserved treats! Here are some tips to help get you started:

Budget, Budget, Budget!

Before you splurge, ensure you have a robust budget in place. Take the time to calculate your monthly expenses and income to guarantee you’re covering your bills on time while also setting aside funds for emergencies and savings.

Create a "Just for Fun" Budget

Allocate a portion of your paycheck for fun expenses, such as vacations and little splurges. This dedicated "Just for Fun" budget can help you indulge guilt-free! Consider opening a Vacation Savings Account with NHCU to streamline your savings for that next getaway.

Review Your Savings

Aim to have 3-6 months’ worth of expenses saved for emergencies. Additionally, prioritize saving for retirement before considering any indulgences outside your budget. This safety net will give you peace of mind and freedom to enjoy life’s pleasures.

Choose Your "Treats"

Before making a purchase, ask yourself these essential questions:    
1. Will this purchase bring me joy? If so, for how long?
2. Will this spending strain my monthly budget?
3. Does thinking about this purchase evoke feelings of joy or guilt?

Lose the Guilt!

Finally, it's time to let go of any guilt associated with treating yourself. Enjoying life’s small pleasures is a vital part of financial well-being. When you have the means to indulge, embrace it without hesitation!

By mastering the balance between saving and spending, you can enjoy your financial journey while treating yourself along the way. Start implementing these strategies today and watch how financial stability enhances your ability to indulge responsibly!

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