Expert-Backed Strategies to Meet Money Goals Without Losing Life’s Little Pleasures

Working toward long-term financial goals doesn’t have to mean cutting out all the luxuries and small joys from your life. In fact, an all-or-nothing mindset can actually hold you back from reaching your goals.

Instead, here are five strategies that can help you control your spending, repay debts, or save for retirement while still enjoying day-to-day life.

1. Build in a Fun Budget

Many people mistakenly believe that saving and paying off debt means that they cannot spend money on fun things. However, this kind of attitude can actually make it easy to get overwhelmed and abandon your larger goals, according to Melissa Joy, a certified financial planner and president of the financial advising firm Pearl Planning.

Joy says that spending on yourself can be part of your budget. Joy gives the example of getting a tax refund. You can put the majority of the refund toward big financial goals, such as saving for a down payment or paying off student loans. But you can also set aside some of it for a fun experience or a small splurge without derailing those larger goals.

“Give yourself a budget for a certain percentage that’s a splurge,” Joy advises. Then, you can use that part of your budget for fun spending without guilt. If you’re the sort of person who likes to make a plan and stick to it, having “fun money” set aside can also help you avoid overspending.

2. Values-Based Budgeting

If budgeting as a system doesn’t work well for you, consider alternatives such as values-based budgeting and mindful spending. This approach focuses on aligning how you spend your money with your personal values, rather than spending impulsively. It can allow you to tailor your spending to both immediate and long-term needs in a way that feels less restrictive than traditional budgeting.

Start by identifying your personal values, then look at your spending and see where they do and don’t line up. For example, you may want to prioritize spending time with friends and family, but discover that you’re spending too much money on food delivery to visit your loved ones. By reframing “not spending money on DoorDash” to “saving to visit my best friend,” you align giving up takeout food with your personal value of seeing your friend. This can make it easier to change your spending habits.

As you gradually work to align your spending with your values, you’ll become more intentional about how you spend your money, which can help you save for long-term goals without feeling like you are sacrificing happiness along the way.

3. Pay Yourself First

If following a budget is tricky for you, a “pay yourself first” strategy can help you work toward long-term goals without feeling overwhelmed. This is a personal finance strategy that encourages you to set aside money for mandatory expenses, savings, and debt repayment goals as soon as you receive a paycheck, rather than at the end of the month. You are “paying” your future self by focusing on your big-picture goals first.

Once those payments are made, you can spend the rest of your monthly or weekly income as you wish, guilt-free. “It’s so much better when you’re looking at the big picture in order to be more prepared for everything,” says Joy.

This can allow you to enjoy small luxuries or discretionary expenses, such as a streaming service you enjoy or a weekend adventure with friends, without wondering if you’ll have enough left over for your long-term goals.

4. Change Your Retirement Savings Mindset

When it comes to saving for retirement, it can feel like there’s no point putting any money in a retirement account if you can’t max out your contributions. But Jill Fletcher, a CFP practitioner and financial advisor with Cary Street Partners, says that’s the wrong mindset to adopt. Instead of focusing on what you can’t save, think about what you can.

“People tend to procrastinate as they wait for the ‘perfect time’ to start contributing,” says Fletcher. “I encourage people to start regardless of whether they are maxing out their retirement accounts or not. Even the small contribution amounts matter.”

These small amounts can make a big difference because they allow you to take advantage of compound interest. Put a small amount of your paycheck toward your 401(k) or other employer-sponsored plan, even if it’s not the maximum you can contribute or doesn’t take advantage of your full employer match.

If you don’t have a workplace retirement account, open a Roth IRA and contribute what you can. Over time, those contributions will add up. You can also dedicate a percentage of any bonuses, lump payments, or cash gifts to retirement savings while putting the rest toward other spending.

Fletcher also notes that your savings strategy can change as your life and income change. “It’s important to increase your contribution rate each year too, as you work towards hitting the max limits,” she says. “I recommend working towards the goal of 20% of gross income.”  But if 20% is out of reach, it’s still better to save something than nothing.

5. Make Paying Off Debt a Game

If you are pursuing debt repayment but don’t want to give up small joys and luxuries, turning the process into a game can help you find ways to continue to enjoy yourself. For example:

• If you love going out to concerts or events, challenge yourself to attend five free events where you live.
• If you have a favorite restaurant, compete with your friends or partner to see who can most accurately recreate their signature dish.
• If you don’t want to give up streaming entirely, see how many free services you can find, such as Kanopy or Freevee.
• Instead of heading to the bookstore to buy the latest release, challenge yourself to read the books you’ve already bought by a certain date.

Keep track of the challenges you complete, including the amount you save for debt repayment. You may find that these are enough motivation. But if you need more, you can also reward yourself with regular, small treats. If you prepare your coffee at home Monday through Thursday, allow yourself a guilt-free latte on Friday. You’re still spending less than you would if you picked up that latte every day.

The Bottom Line

The best way to achieve long-term financial goals is to be mindful of your spending and figure out what motivates you to save, whether that’s values or a sense of challenge. Understanding how you think about money, your personal goals, and what feels like a rich and meaningful life will all help you work toward your long-term goals while still enjoying life in the present.

“Money is not the goal; It is a tool to use to reach your goals,” says Fletcher. “If you don’t define wealth, someone else will do it for you, intentionally or not.”