Living Your Life While Paying It Back ( to Yourself)
Congratulations, you did it – you thrived through 2020! Now how are we going to keep that positive momentum going into 2021?
I used to think I had to spend money to have fun. This year has really done wonders to adjust that mindset, thankfully. But you may be asking, how? How do you live your life on a budget while still having fun? Well, first, you must build yourself a budget. Set a template with your income, your rent and utility expenses, and any other monthly bills. After paying your bills, and putting money into savings, believe it or not, but you can budget for fun. Whether you want to set aside some money for a future vacation, or weekly drinks with friends. This is something you can and should be doing for yourself!
Another great way to save money in the short term while still having fun is to start cooking at home more. I realize this is a very privileged thing to say, as a single woman with no kids, but it makes a difference. I personally love to cook (hate to do the dishes after though) and know that it can be a very creative outlet, if you let it. When buying groceries, buy what you will eat, not everything that looks good. Stick to your list, stick to your budget.
This next thing I am going to say horrifies me to have to say; however, I know a lot of people my age that do not have retirement plans. GET a 401(k) or a ROTH IRA. I’ve had one since I was 19; and I politely encouraged the company I interned for my senior year to let me have a 401(k), even though they didn’t match. What’s the difference? IRA’s are Individual Retirement Accounts, meaning the account is managed by the account holder. 401(k) is an employer-sponsored retirement plan, and generally the employer will match a certain percentage of the income from each paycheck that is contributed to this account. The biggest difference between the two accounts is the taxation. To find out more, Fidelity has some great tips! Moral of the story: planning for retirement is important.
In addition to planning for retirement, it’s paramount to continue to save throughout your lifetime. Set aside 10% of every paycheck, so you save about 10% of your income annually, at a minimum. It is best to just pretend you don’t have this money once in goes into your savings, that way you don’t rely on it and you aren’t tempted to spend it.
In the meantime, I wanted to share some social distance friendly, free and/or budget friendly activities to keep you occupied in the coming months:
Read a book (recommendations: The Martian by Andy Weir or No Stone Unturned by Steve Jackson)
Learn something new (cook a new dish, knit, read tarot)
Do a home theatre night (pop some popcorn, buy your favorite movie candy, & throw a movie on the big screen)
Create a scavenger hunt (with your housemates or neighbors)
Get some fresh air, go to the park / beach
Go camping
Yoga
Art / Color (adult coloring books are the BEST - trust me)
-Happy Holidays, Laura Ann
