There is no shortage of financial advice telling us what we should do with our money.
Save more. Spend less. Plan ahead.
While these tips are valuable, they can sometimes create the impression that every dollar should always be focused on the future. It’s important to save money, but it can be easy to get caught up in the demands of daily life and put off saving for long-term goals, which can create feelings of guilt, frustration or stress.
The truth is that financial health isn’t about choosing between enjoying your life now and preparing for the future. Financial health is when we can find a balance that works for every aspect of our life.
Whether you’re paying off debt, saving for a major purchase, preparing for retirement or simply trying to stay on top of everyday expenses, having a plan that feels achievable can help you make progress without feeling like you are sacrificing the things that matter most.
Financial priorities change throughout life.
A recent college graduate may be focused on building an emergency fund. A growing family might be saving for a home while managing childcare costs. Someone approaching retirement could be thinking about healthcare expenses and long-term financial security.
Since every financial situation is different, there is no single definition of financial success.
One of the biggest misconceptions is that a spending plan should stay the same to reach financial goals. In reality, a spending plan should evolve as life evolves. Rather than asking, “Am I following my spending plan?” it might be more helpful to ask:
Reviewing your plan regularly can help ensure you’re making decisions that align with your current season of life. It also creates space to celebrate progress. Goals you’ve already achieved may free up money for new priorities, while changing circumstances may require you to adjust your timeline or approach.
When people think about financial planning, they often picture a tradeoff.
“If I spend money on things I enjoy, I’ll fall behind on my goals.”At Credit Human, we believe our members shouldn’t have to choose between today’s happiness and tomorrow's security. There is room for both, and you get to decide what is best for your money.
A balanced spending plan recognizes that your money has more than one job. Yes, it helps you pay bills and work toward future goals, but it also can support the things that make life more enjoyable, meaningful and manageable right now. For some people, that might be a daily coffee from their favorite shop or having a streaming subscription that helps to unwind after work. For others, it might be owning a boat, traveling with family, taking up a hobby or paying for a service that creates more time and less stress in their day.
These expenses are often labeled as “extras” but that doesn’t mean they’re not important. Research has found that spending money in ways that increase life satisfaction can positively influence overall wellbeing. When people feel more satisfied and fulfilled in their daily lives, they may be better positioned to stay motivated and continue making progress toward their long-term goals.
So how can we put finding balance between using our money today and saving for tomorrow into action?
One way to find financial balance is to organize your priorities into three “goal buckets.” We’ll never tell you what you should or should not put into each bucket, but if you need help getting started, below are some ideas:
These are the expenses and experiences that support your life today. Examples may include:
These are goals you hope to achieve within the next few months or years. Examples may include:
These are the long-term goals that help create future stability and opportunity. Examples may include:
The purpose of these buckets isn’t to tell you exactly how much money belongs in each category. Instead, they’re a reminder that a healthy financial plan makes room for all three. For example, if all your money goes toward the “later” bucket, you may struggle to enjoy life today. Similarly, if all your money goes toward today, it can be difficult to make progress toward your goals.
Financial balance looks different for everyone. If you need help determining how much money to allocate between spending for today and saving for tomorrow, make an appointment to talk with us at your nearest Financial Health Center. It’s confidential and free to speak with one of our certified specialists anytime you need to.