How I Have Fun AND Save Money {The Joyful Spending Formula}
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- čas přidán 8. 06. 2024
- As midlife women, balancing our financial responsibilities with enjoying life is crucial; the 60/20/10/10 money rule is perfect for budgeting. By allocating 10% of our budget to having fun, we can indulge in guilt-free pleasures while staying on track with our goals.
This method teaches us to budget effectively, save money, and maintain a debt-free journey. Embracing modern frugality means enjoying life’s little joys without breaking the bank.
The 60/20/10/10 money rule is a fantastic way to manage your finances while ensuring you don't miss out on the joys of life.
Here's how it works: 60% of your income goes towards essentials like housing, groceries, and utilities. 20% is dedicated to savings and investments, helping you build a secure future.
The first 10% is for giving, which is crucial for happiness.
The second 10%, however, is all about fun!
This portion encourages you to enjoy your hard-earned money guilt-free, embracing frugal living without feeling deprived.
Learning to budget this way ensures you save money and still have room for those little pleasures that make life enjoyable. It's modern frugality at its best, balancing financial responsibility with the freedom to treat yourself.
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About Sara:
Sara is a wife, mother, and creator of Frozen Pennies. With a degree in English, a former teacher, and a Certified Financial Coach, there is no better place to learn about debt freedom, budgeting, and overall frugal living.
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- Links included in this description might be affiliate links. I may receive a small commission if you purchase a product or service with the links I provide at no additional charge to you.
- Information on this channel (Sara Conklin, Frozen Pennies) only represents my thoughts and opinions. I am not a medical doctor, medical professional, or financial advisor. However, I am a certified financial coach. All content on this channel is intended for entertainment, informational & inspirational purposes only. Don't hesitate to contact a professional with any questions. This video and all videos on this channel are a means of social support.
I play a little game with myself. Before I spend money on non-essentials, I ask myself "What would make me happier? Having this or putting the money into my savings account?" Lately, I find that watching my savings grow gives me more joy than any material thing or even any experience I might have. I do allow a little splurge every month but it's more like $20 month which is well under 10%.
I am so glad to hear you say 25% of income to housing rent or mortgage. I hear so many people say oh I have to have 5 bedrooms and live in fancy area but I want to live in the country and raise my children there but everything is so expensive. I am currently a senior and have always lived by the 25% rule. There are smaller houses not as fancy that are affordable for working people. Living below your means and paying off debt are my goals not a fancy house no one cares about.
Splurges don't have to cost a lot. We live near an upscale seaside resort, & my friends and I love to visit for the day. We get coffee at the outdoor cafe (about 5.00), take in the ambiance and walk along the beach. We get the amenities of the hotel without paying to stay there!😊
That is awesome!
I have no choice but to pay 55% of our income for apartment rent. The southeast side of the Phoenix valley is safer. Apartments are over $2000 a month.
Life is darn near unsustainable, at least that's how the economy makes it appear from main street.
I listen to the Ramsey Show, and they would suggest moving further out of town, getting a roommate, raising your income by taking on more jobs as ways to change that. You could even relocate to a different state with a lower cost of living. Be careful not to box yourself in by saying you have no choice. 😊💕Blessings to you.
This was a great video. I like the idea of 10% Joyful Spending. After I became debt free, I found it really hard to spend money on anything that might be for just me or for fun. It's made me kind of weird. I need to loosen up a little.
Some people dont have enough money to pay basic bills and essentials.
You are absolutely right. Thanks for watching.
Right now, I don't have a budget. I've had too many unexpected expenses over the past 2 years. And while I haven't had to take anything out of savings, I haven't been able to put anything in.
That being said, I may need to take some out this month. I pay almost everything with my credit card, then pay the balance each month. The dog had to have an operation. And I needed to get the emergency brake fixed on my truck as well as put new tires on it.
There’s no time like today to start over on that budget 😊
@@saraconklinfrozenpennies it will be happening soon. Also need to finish paying all the copays from my heart surgery in February. And I need to get my mowers fixed.
Since my husband died, I have been hit with one unexpected expense after another. It's made it impossible to really make and stick to a budget. All told, I've probably had close to $10,000 in unexpected expenses.
I'm so sorry for all your troubles, that's so hard, may you and your dog feel better soon and may your husband rest in peace.
@@NellieBucks thanks. The dog is completely back to normal. I still have some chest pain, but other than that, I'm pretty much normal.
@dizzysdoings I'm glad Doggo is ok, and I hope your finances get back on track too. I think sometimes it's forgotten that when you're on your knees and a boatload of bills come your way, it's not as simple as dividing your income differently will get you back on your feet. It's really hard rowing a boat with one oar. I know where you're coming from, I hope you catch a break soon.
Edited to say, you're on a boat with one oar in your photo, that's hilarious, I didn't even see that before I wrote the comment! 🤣
I would cut the giving until you are well established in your savings for the future. People aren’t even saving 10% for their retirement or emergencies. It is disingenuous to give when you may have to use services yourself. I also find that I just get more solicitations for money if I give. It is a never ending cycle that ultimately helps no one, but it makes the giver “feel” good.
Yes, I would save half of that 10% and the remaining 5% would be all gifts (including birthdays, Christmas, etc). The balance of the 5% after all that would be a small annual donation.
Agreed. We all take care of others every day, there's no shame in giving time and attention to your family and close friends rather than cash for some socially sanctioned others.
I looked at my budget and I have 40% going to housing/bills/groceries....50% savings....3% fun.....7% simply disappears. I need to track down what im doing with that 7%.
I'm doing it but there is no wiggle room after bills are paid but it's a pleasure to see them go down
I have a joyful spend I a 56 mortgage debt free on a pension single 12 month fully funded emergencey fund I like to give buy a cup of coffee a ball of wool go overnight stay go to high tea once a year all bills payed no car
This definitely falls into the "easier said than done" category. Especially the 60% limit for absolutely essential spending. But if you can actually achieve it, you have reason to be proud!
I just checked my budget. I have been pretty much following your formula without knowing it.
You have a lot of great advice and I enjoy your videos. Unfortunately, more than 60% of my paycheck has to go towards essentials because I live in a big city with a chronic medical condition that requires medical equipment (moving isn’t an option because my care providers are all here). I think the 60% part is cool if you can do it, but it’s not practical or realistic for many of us.
When people dont have enough money to buy groceries, dont see allocating any money for charities. And if a person has debt, shouldnt paying off debt take priority before donating?
This is a formula created for people who want to pay off debt and still have joy. The groceries come out of the first 60%.
@@saraconklinfrozenpennies And I am saying.....with all the allocations..people have nothing left
Food is so expensive have had to cut.groceries in half to 25 a week
I pay 25 percent of my income to government housing am blessed
Ramit setti of i will teach you to be rich refers to your rich life, meaning what brings you joy, not a lot of money like it sounds
She is basing this on people making 4K a month. A LOT of people do not bring that much home especially the elderly and people on disability or ssi. The average mortgage/rent payment is around 2K a month so this leaves most people with 2K left you won’t starve but there’s no room for charity or gifts! And, you can’t afford any debt.
This is really the point. If you bring in $2000 a month, you really should not be spending and more than $1200 per month on all bills in the Joyful Spending Formula. If you are, then adjustments need to be made. That means $500 on rent or housing might look like subsidized apartments if your home is not paid for. This formula will work. But one may not like the choices that need to be made.
Going to compare this to current budget. Let’s see how close it is currently
❤❤❤😮😮😮😊😊😊 Sarah
60% no cover even rent or mortgage this days ... think about food and other expenses
If you’re paying 60% to your home payment, you need to find another alternative. This might mean a smaller space, shared housing or moving to a cheaper location. That’s too much.
@@saraconklinfrozenpennies i moved to a cheaper place , have a 2 bedroom house with 2 daughters in don't think i cant do smaller than that .... 60% is just no work for people this days.oooh and no even ask to get a part time job i had one already 😂😂😂😂
What would the difference in rent/mortgage be between a one bedroom apartment and your current house? I ask because for a few years my parents had one bedroom and there were 4 of us in the other bedroom, it was no problem. If there's a huge difference between one bedroom and two that would give you a lot of wiggle room it might be an idea. Life is really tough now with inflation though.
@@NellieBucks no rent but i won still rent a 2 bedroom house will be between 500 to 800 hundred more the my mortgage and apartment same price, i was in one bedroom apartment with my 2 girls , ex and my mother 4 years ago , and yes you can get a affordable house or apartment here in new York ... but trust me you no want to live there
@alexafernandez5743 God love you, yes I understand, there are no go areas here too. I live in Dublin in Ireland and the housing situation is horrific.
There really needs to be a complete renewal of all our government officials in the west, I'm worried that if it doesn't happen peacefully, there will be violence. Something has to give, this cannot go on, decent people are going to snap at some point, and when decent folk start snapping there will be blood. You should be able to raise your children in a safe environment on a single wage - it's not the moon you're asking for.