#FinancialPlanning #MoneyManagement #Budgeting
Assess Your Financial Situation
When determining when to start spending some of your hard-earned money, it’s crucial to first assess your current financial situation. Take a look at your income, savings, investments, debts, and expenses to get a clear picture of where you stand financially.
Set Financial Goals
Setting financial goals can help guide your spending decisions. Whether it’s saving for retirement, buying a new vehicle, or taking a well-deserved vacation, having clear goals in mind can help prioritize your spending.
Establish a Budget
Creating a budget can give you a better idea of where your money is going each month. Track your income and expenses to see where you can cut back, save more, or allocate funds for discretionary spending.
Consider Your Future Needs
While it’s important to enjoy the present, it’s also crucial to think about your future financial needs. Saving and investing for retirement, emergencies, and other long-term goals should be a priority when deciding how much to spend now.
Seek Professional Advice
If you’re unsure about when to start spending some of your money, consider seeking advice from a financial advisor. A professional can help you create a customized financial plan based on your unique goals and circumstances.
Remember, finding the right balance between saving and spending is key to achieving financial stability and security. By assessing your financial situation, setting goals, budgeting, considering future needs, and seeking professional advice, you can make informed decisions about when to start spending some of your money. So go ahead, treat yourself to that well-deserved break or splurge on that new pickup truck – just make sure it aligns with your overall financial goals and objectives. 🌟
I plan to spend ALL of my money. The question is just WHEN. So think of it that way. Project out your entire natural life if you have to, and think about what you will want to spend when. Obviously your projection will be extremely speculative, but it can be a good exercise.
I think you have the right idea of looking at this as increasing your spending changing when you are financially independent / can retire, or changing your spending later (and thus your standard of living). If spending more now means I have to scrimp when I’m old that doesn’t seem appealing. If spending more now AND when I’m old means I have to work longer, maybe that is ok, depends on how much longer?
I think you still have some work to do before letting up. You have a good income now so you can make good progress. For me, I would say you can start letting up when you pay off all your debt (I would include mortgage) and consistently max out your 401K contributions. $500 unaccounted for seems like it already has plenty of buffer for small self indulgences. Also, you didn’t mention an emergency fund and your car is old. Build up 3-6 months expenses in a high yield savings account and a car fund. Maybe it’s not a money issue, you are just a bit burnt out? Try taking a 1-2 week low cost vacation to refresh and assess after that.
Bro I’m 26 with a toddler making $28/hr in California… my rent is $1270 & I’m the only money maker. Not only that but paying both me & my ladies Camry both 23’. Just finished taking my lady to our first Michelin star restaurant in Monterey two weeks ago… point is don’t live to work, work to live. You’ll be fine bro & time in the life is limited enjoy it
This is where a budget comes in, try a 50/30/20.
50% to needs, 30% to wants, and 20% to saving investing.
If the numbers work then that 30% is pure fun money, a budget doesn’t need to feel limiting, it’s quite the opposite, it can be very freeing.
To me the big mystery factor here is marriage and kids. If you want a family, you should probably continue to live frugally and build that nest egg. Kids are EXPENSIVE these days even in the LCOL Midwest. Especially if you’re also supporting a SAH parent.
Also… a spouse & kids don’t just “happen.” You have to go out and date with intention to find a life partner.
I know you came for financial advice, but right now, I feel it’s hard to give that advice without knowing if a family & kids is in your future.
My answer to your title question of when to start spending your money:
If I buy X will it change my retirement outlook?
if you want to buy a truck you’re at the point in life that you can buy it in cash so do you want to pull 40-50K from the liquid net worth (i’m assuming a brokerage account?) to buy a truck or would you rather not put more into the brokerage short term save up and buy a truck in 6months?