Budgeting. Settling debt. Investing. Saving. If you could tell your younger self just one thing, it would probably be that being a grown up isn’t quite as liberating as she thinks – especially when it comes to managing money. Yet, while we may be responsible adults, there’s no reason we can’t use our funds for the fun stuff too.
“To start being a Badass Grown Up with your money, you need to start off by figuring out what really matters to you,” writes Sam Beckbessinger, author of Manage Your Money Like a F*cking Grown Up. Ask yourself what dreams or ambitions you’re looking to finance.
Beckbessinger argues that when you’re in control of your money, you’re more in control of your life. Yet, it’s only by doing the seemingly mundane tasks like budgeting, saving and making informed investment decisions that you can ensure you’ll have enough for what you really want.
Set goals
We all want to have enough money to fulfil our dreams and have some fun, but there’s no escaping the ever-increasing cost of living. Yet, we can ensure we have enough to see the world, buy properties, finance family getaways, or indulge ourselves and loved ones with some luxury items or experiences. It all starts with planning.
Goal setting may sound clinical but it’s a process that’s integral to making your dreams reality. It can even be – dare we say it – fun. Once you’ve established your short and long-term goals, break down the costs involved. Now it’s time to budget.
Get budgeting
Taking the time to lay out a sometimes-shocking tally of monthly expenses is not anyone’s idea of a good time. But, by understanding what you’re earning and spending, said good times can follow. By establishing how to limit unnecessary expenses, pay off debt and set enough aside for the things you really enjoy – you’re working towards achieving your goals.
A practical way to do this – and have fun along the way – is to employ the 50-30-20 budget rule. This suggests that you allocate 50% of your after-tax income to needs, such as bond repayments, groceries and medical aid, 30% to your wants, the fun stuff like holidays, shopping or spa days, and 20% to savings, investments or debt payments.
Invest wisely
A little known, not-so-fun fact? 74% of women die single. That means you need to have control of your finances and understand the impact of the investment decisions you make. Being a clued-up grown up with a proactive approach to creating and maintaining wealth therefore starts with understanding what you need to invest to attain financial freedom.
Establish your appetite for risk, investigate your investment options and get professional help in crafting a diversified financial portfolio. Which will help you to attain your initial goal – using your money for what truly brings you joy.
