How would it feel to know that every paycheck you brought home was yours to spend however you wanted? You know, like when you were fifteen. Nice! But really think about what you would do if you could make your money your own again.
An Extra $1000-$1500 each month
Let’s say your house was paid off. Same with your car. No credit card debt, student loans, nothing. You just have your utilities, cell phone, insurance bills, property taxes, etc. Just the basics. For some people, that might mean $1000-$1500 extra each month. That could be a lot of fun!
Just Imagine
Imagine just going out and paying cash for a new piece of furniture. Or going clothes shopping without a credit card.
But think about this. You could save $12-18,000 in one year and buy a pretty nice car for cash. Or take an amazing, guilt-free vacation.
Depending on the age of your kids, you could cash-flow them through college like we did. I know, not as exciting as the vacation, but still awesome to not take out student loans.
Endless Possibilities
The possibilities are many, as long as you never borrow again. Knowing this could be your future reality should be one of your biggest motivators to pay off debt, pay off your cars and mortgage, and get rid of all the fluff and stuff in your budget (and garage!)
Keep It, It’s Yours
And not only that, but every raise, every bonus, every unexpected windfall, is yours to keep. Or, to use however you like. The future looks even brighter when you think about that.
Savings Goals
If you had $1500 a month to save, what would you save it for? It can add up pretty quickly over just a few months. $6,000 in four months, or $18,000 in a year.
Short-term Goals
Some goals are just necessities, such as braces for your kid ($5-6000), a newer car to replace the one you’ve been patching together while becoming debt-free, or quickly approaching college tuition that you couldn’t save for before. You might need to replace some furniture or buy a new lawn mower. There are many things you may have been putting off that you can now start to take care of.
Retirement Goals
If retirement is far away, you can start investing part of this money towards it, but if it is creeping up quickly and you haven’t been serious about saving, you might need to start investing larger chunks to get you up to speed. If your house and car are paid off, you can work quickly to catch up.
Sinking funds
Sinking funds are like little individual savings buckets. You can fill them one at a time, or divvy up portions into each one each month. Here are some sinking funds you might want to start filling with your extra money.
- A 3-6 month emergency fund
- Annual insurance premiums
- Dental and Medical copay/deductible fund
- Home repairs (such as a new roof)
Spending Goals
So maybe you’ve got all your necessary future expenses covered, or you are slowly filling your sinking fund buckets, so now you are ready to have some fun spending your money. It’s still a great idea to set goals and spend intentionally and not with wild abandon! Decide what you want most and go for it.
Vacations
The best vacation we ever went on was a well planned trip to Hawaii. I planned out an awesome schedule packed full of days of fun. I figured out how much everything would cost and started a savings bucket for it. We had so much fun and came home without any credit card debt following us. Definitely the best way to vacation. If you plan well, you could do this every year!
Remodels
Maybe you want to remodel your kitchen or bathroom. Or put down new flooring. Start a bucket. Want a new garage or storage shed? Start a bucket. Make a plan. Remodeling can be super expensive, so while you are saving every month, you can be getting the details nailed down and scoping out the pricing and sales. It’s your money now, so make it work for you. Stretch it to make it go further and do more.
More Fun!
How about buying a whole new wardrobe? A baby grand piano? (It’s on my list!) New outdoor furniture, a swimming pool or hot tub? How about starting a new business, become financially secure enough to become a freelancer? Dream big and make it happen.
How Do I Make My Money My Own Again?
Make your money yours again by getting to the place where you are no longer giving your money to banks and lenders, and, you know, credit card companies.
Dave Ramsey likes to say “live like no one else, so later you can live like no one else.” This means getting to basic in your budget by paying off all your debt and then being able to save, and eventually spend, without guilt or hardship.
Stop spending your future money now, so you can have it to spend later. Here’s how.
- Make a budget to get out of debt.
- Set some goals to motivate you.
- Dream big and be intentional with your money.
You CAN make your money your own again!