Buzz
If your financial strategy involves saving, saving, saving and never indulging in anything enjoyable, you're bound to experience burnout quickly. It’s fine to allow some fun spending in your budget, and the 'Pick 3' rule can guide you in making the most out of that enjoyment.
We've previously mentioned that it’s wise to spend your money on the things that bring you the greatest happiness, and this rule, shared by the finance blog Save Money, Dammit, echoes that sentiment. They elaborate:
Before you start criticizing your spending habits (
they could always be worse!
), take a moment to reflect on the 3 spending habits that bring you the most joy. What many financial experts fail to emphasize is that it’s actually okay to spend on things that make you happy.
Here are my 3 favorite indulgences:
Outdoor equipment (camping, hiking, running)
Films
Music (Spotify subscription, guitars, high-quality headphones)
It’s simple—direct your discretionary spending toward the three areas you enjoy the most. This doesn’t mean you should go overboard in these categories, but it helps you avoid wasteful spending on other things.
They also recommend identifying your three largest spending problem areas. These are the expenses that might provide brief moments of pleasure, but ultimately don’t offer much value in the long run.
Once you have a clearer understanding of your habits and preferences, it becomes much easier to make intentional decisions about how to spend your money. For further details, check out the link below.
Image courtesy of Davey Ninn.
