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

-

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!

All comments within the New Horizons Credit Union blog are the responsibility of the commenter, not the blog owner, administrator, contributor, editor, or author. By submitting a comment on our blog, you agree that the comment content is your own and to hold New Horizons CU and all subsidiaries and representatives harmless from any and all repercussions, damages, or liability.

Comments

Post a Comment

Popular posts from this blog

6 Steps to Take Before Retiring

-
Image
  Everyone counts down the years, days, and minutes until they can retire. But before you retire, there are six important steps you need to take to retire worry free.  1. Define Your Retirement When you define your retirement, you think about what it is you want to accomplish. Do you want to travel the world, the states, or stay at home and relax? Do you want to make improvement to your home, or sell your home and purchase an RV? When you know exactly what it is you want to do when you retire, you will have an easier time transitioning from work to retirement life. 2. Take Stock of Your "Assets" This is an important step because you're taking a look at all the money you have. Look at how much you have in your savings accounts, retirement accounts, stocks and bonds, and any other savings accounts you may have. This will give you a better idea on how much money you can allocate to everything
Read more

7 Steps to Start Saving

-
Image
  Saving can be a little intimidating when you don't know where to start. But remember, the biggest mistake you can make is not saving. Below are a few tips to help you get started with saving. 1. Track Your Expenses The first step to start saving is to track your expenses. Figure out where your money is going, how much you are earning and spending, and how much you have left over. If you use a credit card, you can get a chart with your expenses broken down where you can see what you're spending your money on. Once you figure out where all your money is going, categorize it so it's easier to see where you're spending most of your money. Use this to create a budget in step two.   2. Create a Budget Now that you have your categories, create a budget so you can minimize spending. Categories should include things like: rent / mortgage car payment / car maintenance bi
Read more

Get Your End-of-Year Financial Health Checkup

-
Image
As the eagerly awaited holiday season gets underway, the end of the year is a great  time to get a financial health checkup to make sure your finances are on track.    With regular checkups, you can fix small problems before they become big issues.   This year-end, keeping financially healthy is especially important due to many economic uncertainties  related to inflation, inventory shortages, as well as the expiration of COVID relief programs put in place more than a year ago to help people manage through the pandemic. Your Financial Health Check Up   Like a physical health checkup, a financial checkup examines your vital signs to be sure all is well when it comes to your financial health and wellness.  Do you have an emergency savings account? How do your credit card balances look? Are you tracking monthly income and expenses? What does your credit score and history look like? These are a few of the vitals reviewed during an end-of-year financial
Read more