I’ve done the deprivation thing, and it’s not fun…nor is it effective. Trying to withhold yourself from spending money, having fun, seeking out adventure, or any other form of deprivation will leave you ready to throw it all away and become a digital nomad. Not that there would be anything wrong with that! My point is that you don’t have to let yourself get to that limit. You can plan for the future without feeling deprived in the present.
You can work hard for your money and work towards your goals but also take time in the present to enjoy the fruits of your labor. You can find a balance between building your net worth and enjoying this time where you’re the youngest you will ever be! As someone who has been setting and achieving financial goals for nearly 15 years, I can honestly say that your financial goals and dreams don’t have to come at the expense of your happiness right now.
You can find harmony between saving for the future and savoring the present. Sure, it’s not going to be easy. It’s hard to balance long-term planning with short-term enjoyment, but it’s worth the effort. It’s worth finding the balance, as best you can. It’s a balance that will likely never go away. As long as we have a future in front of us, we’ll need to plan for it, without losing ourselves in the present. I’m sharing 6 tricks to help you plan for the future without feeling completely deprived in the present.
6 Tricks to Plan for the Future Without Feeling Deprived in the Present
#1 Set Realistic Financial Goals with Built-In Flexibility
One of the best ways to always keep the future in mind is by setting (and working towards) goals. When you set and work towards goals, you’re doing things in the present that help you have a better future. Start setting realistic financial goals that will help your future self be in a position of power.
Define clear and achievable financial goals that allow room for occasional indulgences. To do this, review your budget as you’re determining your goals. Let your budget tell you what amount is reasonable to apply to your goal and what amount should be kept for you in the present. Here’s an example: Instead of saving 25% of my income, I will save 20% and allocate 5% for guilt-free spending.
As someone who can beat herself up for not reaching goals, adding flexibility will make you feel so much better. Try to take a “progress over perfection” mindset to reduce the pressure to perform. Give yourself grace when things don’t go according to plan.
#2 Budget for Fun
This trick is probably a given by now, but I’ll never stop sharing it. Your budget should include fun. Your budget will only be successful if it includes the things you love. You don’t have to go crazy here (remember, we want to make sure you’re working towards our goals as well), but your budget should absolutely include an “enjoyment” or “fun” category in your budget.
Since we only have so much income to allocate, take some time to prioritize activities and purchases that truly bring you joy. Whatever those things are, make sure they’re factored into your budget. You can hear about my budget non-negotiables in CGS Podcast #70.
#3 Focus on High-Value Experiences
It took me a few years and tens of thousands of dollars’ worth of debt to shift my spending focus from material things to high-value experiences, like travel and new restaurants. Vow to spend your money on experiences that create lasting memories rather than short-lived purchases. The beauty here is that everyone’s experiences will look different.
Maybe it’s a solo weekend road trip, a couple’s cooking class, or a movie night with friends. Whatever you determine to be a high-value experience, allocate the money in your budget to those things instead of things that truly don’t matter to you. This allows your purchases to bring you joy without derailing the work you’ve started on your financial goals.
#4 Automate Savings and Investments
Set up automatic transfers to savings and investment accounts to reduce the temptation to spend. The minute you get paid, have an automatic transfer set up to take out exactly what needs to be saved or invested. This “set it and forget it” approach helps ensure you’re building wealth in the background and not using all available money to spend in the present.
#5 Embrace Mindful Spending
Being more mindful with your money can help you make intentional financial choices that align with your overall values and goals. To be mindful with your spending means you are aware of what’s happening with it. You’re not mindlessly swiping your card. You’re thinking through each purchase.
Practice intentionality with purchases by asking: “Does this align with my goals and values?” If the answer is “no”, practice discipline by avoiding the purchase. If the answer is “yes”, review your budget to make sure there will be no negative impacts and move forward accordingly.
#6 Celebrate Progress, Not Perfection
It pains me to say it, but no one is perfect with money (or anything). No one gets it right all of the time. That doesn’t mean we can’t try. Progress is better than perfection. Strive to acknowledge your money milestones, no matter how small they seem. This will help you to stay motivated and avoid feelings of deprivation.
When you reach a savings milestone, review your budget to see when you can treat yourself to a facial, indulge in a guilty pleasure or start planning a mini vacation! Rewarding yourself for wins as you work towards your money goals can help bring joy to your life in the present while reinforcing good financial habits.
Related: How to Ditch Guilty-Spending on a Budget
If you take anything away from my guidance, I want it to be the understanding that planning for the future doesn’t mean sacrificing happiness today. You can find that balance! I encourage you to try one or two of the tricks I listed above to find balance between present-day fun and long-term financial security.
What’s your favorite way to enjoy life while saving for the future? Which of the tricks above will you be trying first? Share your thoughts and feedback in the comments!
-Raya
The CGS Team
