Now that you have followed all the steps we have outlined in regards to managing your monies, what’s next? It’s time to enjoy it!
Is there a place you have always wanted to visit? Are you overdue for a new appliance? Have you always wanted to be able to donate more to a cause but couldn’t? You should now be in a better position to pay for the things you want without depleting the funds for your needs.
A good budget should have a place for a cushion fund or a goal fund. This is not an emergency fund (and you definitely need at least one of those). For expenses you know that are coming up (weddings, trips, etc), create a separate fund where monies get allocated to so you wouldn’t have to dip into your emergency fund or savings for those. Then when it’s time to pay for them, you won’t feel the pinch or the guilt that can be associated with paying for large expenses. Some apps and banks can help you with setting these up so look into them. We highly recommend them.
For expenses that may come up unexpectedly, you may also create a separate fund for those, or you may choose to use your emergency fund. We just caution you if you do choose the latter, make sure you define what an emergency is before you start using all your funds in this account for any and all purposes.
We hope this series has helped you in your money management. Once again, these represent our advice and may not work for your case. They do not replace a financial advisor’s advice, so we encourage you to seek professional advice if needed. If you have any questions, we are here to answer.