We’ve all heard “live below your means” and I completely subscribe to this lifestyle yet, I also believe that we can enjoy ourselves responsibly while pursing FI (financial independence). In order to do this, I recommend adding an “experience spend” line item into your budget. 

Your monthly budget is your strategic tool to help you effectively manage your money, therefore, deliberately allocating financial resources towards spending on experiences that bring you joy like travel, attending concerts or just a night out with friends is a must.

Before we talk about why it’s important to spend money on experiences while on your journey to financial independence, here are a few creative ways to fund it:

1. Set aside a percentage of your income each pay period
2. Carve out a portion of your bonus or tax refund
3. Work a few additional hours for overtime pay at your current job
4. Leverage current skillset to secure freelance work
5. Participate in market research projects
6. Teach your native language to international students
7. Offer virtual services such as digital marketer or virtual assistance
8. Utilize platforms like YouTube to learn DIY skills and save on minor repairs
9. Only buy food that’s on sale and in season, this really adds up

The goal here is to identify your strengths, interests and resources then leverage them to earn additional money, particularly if your budget is already stretched to the max. I recommend looking for virtual work, so you don’t incur additional expenses of spending hours outside your home (i.e., transportation, meals, etc.).

Now that you have a game plan on how to fund this line item, let’s talk about why it’s important for you to view spending on experiences as essential in your budget. When pursuing financial independence, it can seem counterintuitive to spend money on experiences but if you don’t allow for some fun, you will quickly burn out or worse, go on spending spree out of frustration and wreck all the progress you have accumulated. (Note: spending on experiences is not defined as a lavish holiday that will set your debt repayment back several years. Nor is this the opportunity to stop paying on your debt or contributing to your savings/retirement. This spend is to afford a well-balanced life to make this period of restraint enjoyable. You are a gen-xer…..you know how to do two things at once :).

Here are some reasons why it’s important to spend on experiences while on your journey to financial independence:

Cherished memories: Experiences create lasting memories that often have a more profound and enduring impact on happiness than material possessions. Memories of enjoyable experiences can be cherished for years, providing ongoing satisfaction and nostalgia.

Meaningful connections: Experiences usually involve social connections, such as dining out with friends, attending events with your partner or traveling with family. Spending on these can strengthen these relationships, create deeper bonds and provide a sense of belonging, which are essential for overall well-being and happiness.

Exploration and creativity: Experiences allow you to try new things, explore different interests and immerse into diverse cultures which can lead to personal development and enrichment. It can broaden your perspective, stimulate creativity and foster personal growth. 

Increased happiness: Research suggests that spending money on experiences tends to result in greater levels of happiness compared to spending on material items. Researchers also found that people felt a greater sense of vitality or “being alive” during the experience and in reflection.

Reduced comparison: Experiences tend to be more unique and personalised compared to material possessions, making them less susceptible to social comparison. This can reduce feelings of jealousy and insecurity which is often associated with materialism.

Spending on experiences can lead to a more fulfilling life because you are able to make meaningful connections, reduce comparison and create cherished memories. While experiences may offer enduring satisfaction and contribute to a well-balanced life, it should be done mindfully and in moderation, taking into account your individual financial circumstances, priorities and long-term goals. 

Thanks for reading and remember, our story is far from over, let’s keep Enjoying the Journey!