The Best Financial Decision I Ever Made: Opened a Fun Bucket Savings account so I remembered to have fun and not feel guilty about it.
Adam Rifkin stashed this in Personal Finance
Redditor theothergirlonreddit wrote about a Fun Bucket Savings account:
I am a 23/f who has had to purchase nearly everything in her life after middle school. Car, sports fees, clothes, toiletries, and on to rent, college tuition, EVERYTHING. This made me so financially conscious I felt incredibly guilt spending additional money towards non-financial goals (i.e. retirement, emergency savings, and student debt).
I discovered all this "financial responsibility" made me miss out a lot on life. I had some "treats" such as coffee or going out for a beer, but would say no to nearly all traveling or entertainment or experience purchases over $40. I just obsessively tracked all my dollars and I had extra, I'd put it towards a financial goal.
Except for one year ago, I decided to save in a bank outside my checkings and I picked a bank that let you have multiple savings that you could title and set up goals. I already put away about $175 each paycheck towards emergency savings (already have about $5k here), $400-$700 towards student loan debt, and $600+ a month towards retirement. I decided to put another savings account titled, "Fun Bucket Savings" and put about $67 a paycheck in there, with an opening balance of $300.
This year I read all my memos from my withdrawal and I must say, each of those experiences were highlights of my year and before this year, I would have justified not going. This year, I had gone on a 3 day cruise to the Bahamas ($382), a concert for one of my favorite bands ($117), two musical festivals ($202 and $287), and a flight/trip across the US ($385)! I stayed with friends and family so it was fairly cheap. Since I also budgeted each paycheck, I didn't find any significant spending increases month over month.
Sometimes a unintended consequence of financial planning is we forget to live or we forget to budget for the things we like or we feel guilty about it. If you can put aside $20 a paycheck, $100, or whatever, in a savings account just dedicated to having fun, you lose the guilt of any "big purchases" and you don't forget to live. Even if you may pay off your debt in 4 years versus 3.5, if each of your 4 years gives you more experience than the waiting 3.5 years to "finally enjoy yourself", I encourage you to have financial courage to budget some money for you to just have fun!
Sorry if this isn't news to anyone or if you don't feel like you have a budget for this at the moment or if I'm too young to know better, but this has been personally the best financial decision I've ever made.
EDIT: I use CapitalOne 360 Savings. It's 0.75% interest with I believe up to 25 bucketed saving accounts.
TL:DR: The Best Financial Decision I Ever Made - Opened a Fun Bucket Savings account so I remembered to have fun and not feel guilty about it