If your financial plan is to save, save, save and never spend a dime on anything fun, you'll burn out really quickly. It's ok to include a little fun spending in your budget, but the "Pick 3" rule can help you make the most of that spending.
Photo by Davey Ninn.
We've told you before that it pays to spend your money on the things that bring you the most joy, and this rule, via finance blog Save Money, Dammit, supports that idea. They explain:
Before you start shaming yourself about your poor money habits (they could be worse!), you should take a closer look at 3 spending habits that bring you the most happiness. What many personal finance folks don't often tell you is that it's actually ok to spend money on things you enjoy.
Here are my 3 spending pleasures:
- Outdoor gear (camping, hiking, running)
- Music (Spotify subscription, guitars, great headphones)
It's easy enough — focus your discretionary spending on the three areas you enjoy most. This isn't to say you should go crazy in these categories, but it helps you eliminate mindless spending on other things.
They also suggest making a list of your three biggest spending problem areas. This is spending that may bring you short bursts of happiness, but ultimately, you don't get much out of.
Once you get a better idea of your habits and preferences, it's a lot easier to be deliberate about how you use your money. For more detail, head to the link below.