How to Balance a Fun Life With Your Financial Goals

May 16, 2023

In this highlight, we discuss how to effectively balance your finances with your life.


Next up, we’ve got a question from HJS (64). He asks, “How do I balance savings and fun? I save about 30 percent, but my wife sometimes thinks I have too tight a grip on our spending. Do you guys have any advice for him?”

Well, the first question I’d ask HJS is if he fights with his wife when she wants to spend money. Saving at a 30% rate is quite strong, considering we don’t know his goals, age, or portfolio. We recommend a 25% savings rate to provide financial freedom and allow for spending and experiences. HJS should reflect on this and discuss goals with his wife. If their current savings rate aligns with their goals, they can loosen up their spending. Finding a balance is important.

Age also factors into savings targets. In your 20s, a 25% savings and investment rate is aspirational, while in your 30s, it’s outstanding. Knowing your “why” is crucial, as it impacts the savings needed to reach specific goals. If HJS plans to retire traditionally around 60 to 65, a 20-25% savings rate will serve them well. However, if they aim to retire earlier, say between 45 and 55, they’ll need to save more to achieve those goals.

The “why” has a significant impact, and we provide tools and resources to accelerate the financial journey. Our courses and tools, available at learn.moneyguy.com, help couples navigate this process and determine their current position. Once you know where you are, you can make informed decisions together.

If HJS is already saving around 25% or 30%, they might be okay. They can explore how to better utilize the additional 5% to create memories and improve their lifestyle. Taking the course and using the tool will provide clarity. It’s not about being overly frugal like Ebenezer Scrooge, but rather incorporating savings into the budget and enjoying life responsibly.

I’ve personally experienced creating great memories on a limited budget. My wife and I traveled through Europe when we were financially strained, and despite some challenges, it created unforgettable moments. Instagram-worthy accommodations weren’t a priority back then. Memories blossom regardless of the circumstances. It’s important to strike a balance and not wake up one day at 50, wondering what you missed out on in your younger years. We aim to provide you with tools and resources to navigate this journey effectively.

For more information check out our free resources here.



Most Recent Episodes

The Best and Worst Types of Life Insurance!

No matter how much you know about finance, you’ve definitely heard about life insurance: maybe from commercials pitching it as something to buy your baby, or a family member or friend that got into the industry. Is life insurance worth getting or something you should...

How to Recover From 4 HORRIBLE Financial Mistakes!

In our nearly four decades of combined experience managing money, we’ve seen some horrible financial mistakes - here are the four worst we’ve seen first-hand and what you can do to avoid making a similar mistake. In this episode, you’ll learn: The worst financial...

New Data: Active Investments Are Better Than Index Funds?

A new research paper is out that claims active funds from two large providers, Vanguard and Fidelity, beat their own index funds. Are active funds beating index funds? What’s going on here? Let’s find out! For more information, check out our free resources...

Why Americans Are Actually Broke! (2023 Edition)

Americans might be bad with money, but you don’t have to be. In this episode, we discuss the underlying reason why Americans are so bad with money and how you can do it better. In this episode, you’ll learn: Common financial pitfalls you should avoid Practical steps...

Build Wealth With the 3 Bucket Strategy! (By Age) 2023 Edition

We believe there are three distinct taxable buckets you have the option of investing in for retirement. We’ll talk about how to balance those buckets by age and show a case study by age that shows what your buckets may look like! In this episode, you’ll learn: The...

Debt Ceiling Crisis: World’s Financial System at Risk?

Should you be worried about the debt ceiling crisis? Although political leaders have so far been unable to come to an agreement, we'll tell you what history says will happen and what it means for your finances. For more information, check out our free resources...

Financial Advisors React to INSANE Money Advice on TikTok!

Is financial advice on TikTok all bad or is there some good advice out there? Check out our brand new TikTok react show where Brian and Bo give their honest reactions to trending financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO)...

How to Save Thousands of Dollars in Taxes in 2024

Tax season is over for most of us, but that doesn’t mean it’s time to stop thinking about your taxes! Planning out your tax strategy in advance can save you time and money on your taxes. In this Q&A, we’ll discuss the line items on your return to pay attention to...

Average 401(k) Balance by Age (2023 Edition)

Are you doing better than the average American at saving in your 401(k)? We'll talk about basics of a 401(k), including new limits, employer matches, and vesting schedules, how many millionaires are created by 401(k)s, and of course the average 401(k) balance by age....