A Guide to Balancing Your Financial Wellbeing & Opportunities –
Spending money on others, especially for life celebrations like milestone birthdays, weddings, or special trips can create a unique set of pressure on our finances. The desire to celebrate with loved ones is natural, but it’s important to do so without compromising our own financial stability. So, how can we build these celebrations into our budget and handle the pressure to spend responsibly?
Building Life Celebrations into Your Budget
When it comes to significant life events, particularly milestone birthdays or weddings, there’s often an element of forward planning involved. We usually know in advance when these “big” celebrations are going to happen, giving us the opportunity to prepare financially. Whether it’s a milestone birthday, an extravagant trip, or a wedding. Knowing about these events well ahead of time allows us to include them in our budget for the coming year.
Planning is key here. By incorporating these expenses into our financial plan early on, we can approach these celebrations with a sense of control, knowing we’ve accounted for them without jeopardizing our financial health. This is especially true if our financial planning is sound and we’ve ensured that our emergency fund is in place. The power of this planning is that it enables us to enjoy these moments fully, without the stress of last-minute financial strain.
At the same time, it’s essential to remember that our spending should bring us joy. We encourage people to budget for the things that matter most to them—those moments that enrich our lives. Too often, we miss out on these joyful experiences due to a lack of preparation. By taking control of our finances and planning ahead, we can indeed have our cake and eat it too!
What Are The Non-Negotiables?
While it’s important to celebrate life’s big moments with friends and family, it’s crucial not to jeopardise our own financial security in the process. This should be a non-negotiable rule. We must be careful not to take on financial burdens that we can’t afford, as deviating from our financial plan can have significant consequences—not just financially, but psychologically as well.
Putting ourselves under financial pressure due to external expectations can lead to stress, anxiety, and even resentment. It’s essential to remember that no celebration is worth compromising our financial stability. Equally, we must always consider the “opportunity” spending can bring. Those little pockets and moments of joy that come with spending money on others and being a part of these celebrations are super important to our psychological wellbeing! It’s about finding the balance that is right for us.
Is It Okay to Say, “I Can’t Afford It”?
You might feel under a lot of pressure and it can be difficult to navigate. However, having open and honest conversations about money with friends and loved ones is crucial. Saying “I can’t afford it” shouldn’t carry a negative connotation. If we’ve already established clear financial boundaries and have had prior conversations about finances, it should be perfectly acceptable to decline an invitation or request that falls outside of our budget.
You may for example, be faced with a situation where you feel under obligation to put an expense on a credit card when you feel that you can’t afford it. If it is suggested to you and you potentially feel backed into a corner, consider whether it aligns with your financial goals and be cautious about deviating from your own financial plan for the sake of others. Taking on debt, particularly under pressure from someone else, can lead to long-term financial strain. Careful consideration is essential in these situations to ensure that we’re making decisions that support our financial well-being rather than undermining it.
It’s OK To Be Selfish!: Prioritising YOUR Financial Well-being Above All Else
The pressure to spend money on others during life celebrations is a common experience, but it’s one that can be managed with thoughtful planning and open communication. By building these events into our budget, we can participate in the joy of these moments without sacrificing our financial health. Remember, it’s perfectly okay to set boundaries and prioritise your own financial security. After all, true friends and loved ones will respect and support your decision to maintain your financial well-being! If you’re unsure, speak to us at Women’s Wealth and we can support you in building a solid financial plan!