Banking 103: Balancing Fun and Financial Savvy in a Shitty Economy

Banking 103: Balancing Fun and Financial Savvy in a Shitty Economy

Disclaimer: While the GDP and stock market might look good on paper, a lot of us regular folks aren’t feeling the benefits. For those of us who feel the pinch every time we hit the grocery store, this guide is for you—the everyday person trying to make it work in a challenging economy.

Hey there! We’re back with Banking 103, your trusty guide to balancing savings with having a good time, even when the economy isn’t exactly helping. If you’ve already mastered the basics of banking and saving (thanks, Banking 101 and 102!), it’s time to dive into the fine art of enjoying life while keeping your finances in check.

Step 1: The Golden Rule of Spending

First up, let’s get real about your budget. There’s a classic rule that says, “If you can’t buy it twice, you can’t afford it.” Now, this doesn’t mean you can’t ever treat yourself. Instead, think of it as a gentle nudge to ask, “Is this going to mess up my month if I buy it?” If the answer is yes, consider holding off until you have a bit more saved up.

Step 2: The 50/30/20 Rule – with a Twist

The 50/30/20 rule is a simple way to divide your income:

- 50% for essentials (rent, food, utilities),

- 30% for fun and leisure, and

- 20% for savings.

But let’s add a twist! Right now, inflation is affecting everything from groceries to gas. So, if you’re finding it hard to keep 30% for fun, try this version:

- 50% for essentials

- 20% for leisure

- 15% for savings

- 15% as a “life happens” fund (for things like unexpected bills or gifts).

Step 3: Find Fun for Less

The best way to enjoy life is often finding joy in the little things. Here’s how you can balance spending with low-cost options:

1. Potluck Hangouts: Instead of splurging at a restaurant, try hosting a potluck. It’s cheaper, you get a variety of food, and it’s perfect for bonding time with friends.

2. Game Nights and Movie Marathons: Skip the pricey theater tickets and stream a movie at home with popcorn and cozy blankets. Want to spice it up? Host a themed movie night or game night!

3. Explore Local Events: Many towns and cities host free events, especially around the holidays. From holiday markets to light displays, there are plenty of festive, free ways to celebrate the season.

Step 4: Save for Holiday Fun with Budget-Friendly Ideas

Holidays are coming, and gift-giving can be expensive. Here are a few ways to be thoughtful without breaking the bank:

- Secret Santa with a Twist: Organize a Secret Santa, but set a budget limit. Instead of buying something big, make a handmade gift or plan a “gifts of service” exchange, where you each agree to do something nice for the person, like a “coupon” for a free coffee or homemade cookies.

- Holiday Shopping Rule – Save First, Spend Later: Instead of buying gifts impulsively, start saving early in the season. If you budget $10 per week, you’ll have a nice stash by December without a financial hit.

Step 5: Keep a Small Vacation Fund (But Be Realistic)

If you dream of a getaway, a small percentage of your income can go toward a “vacation fund.” Even if it’s just 5% of your monthly income, it can add up over time. But here’s the real talk: prioritize essentials first, and make sure that you have savings in place. You don’t need to fly across the world to have a break; even a weekend road trip with friends can be fun and affordable.

Step 6: Surround Yourself with Friends Who Get It

I am not telling you to hang out with goalless bums. But you need to find people like you who have financial goals and can have a good time because they are with you. There’s no shame in telling your friends you’re budgeting. In fact, they’re probably in a similar boat. Make money talk casual, not taboo. Suggest low-cost hangouts and be honest about what you can swing financially. Your real friends won’t mind—and they might even be relieved to share similar goals.

Your millennial Big sister's final thoughts:

With some careful planning and creativity, it’s absolutely possible to save while still living it up with friends, celebrating the holidays, and occasionally treating yourself. Remember, being smart with your money now doesn’t mean you can’t enjoy life—it just means you’re setting yourself up for even more freedom down the road.

Here’s to finding the balance and making memories without breaking the bank! 💸