You shouldn’t have to give up things that make you happy just for the sake of saving as much money as possible. It doesn’t make sense to skip a casual brunch with a childhood friend that you haven’t seen in forever because you think that you shouldn’t be spending any more money on eating out.
In making spending decisions, it’s important to identify your values and the things, or experiences, that bring you happiness. When making your budget, give yourself excess spending capability in categories that impact your well-being and tighten your budget in areas that don’t.
For me, relationships with friends and family are at the top of my values and I find myself frequently nurturing these relationships over a meal, some form of entertainment, or a vacation. I try not to skip a date, activity, or visit with a loved one because I do not want to spend the money. Therefore, I give myself a plentiful budget for eating out and entertainment. I know that the money I spend with those most important to me is well spent. Having to penny pinch in other areas of my budget is a sacrifice I am willing to make.
One of these penny pinching areas, for me, is physical fitness. I know that my workout routine does not hinder my happiness. I can’t justify a gym membership or a daily $35 spin class when a free run outside provides me the same benefit. However, this is not true for many people. I have several friends that give themselves plenty of excess spending capability for their physical fitness routine because it significantly impacts their well being.
Whatever your values, be sure to give yourself excess spending capacity in the areas that align with these values and tighten your budget in areas that don’t.
