In the quest to find harmony between planning for tomorrow and savoring today, we’ve gathered insights from eight financial experts and entrepreneurs. From mastering the art of distinguishing needs from wants to creating a balanced budget, these Founders and CEOs offer their singular pieces of advice for maintaining financial well-being.
- Master Needs Versus Wants
- Adjust Psychological Money Views
- Embrace Conscious Spending
- Implement 50/30/20 Budgeting
- Use Automated Savings Tools
- Balance Energy, Experience, and Finance
- Practice Delayed Gratification
- Create a Balanced Budget
Master Needs Versus Wants
Ditch the rigid budgets! Strike the financial balance by mastering needs vs. wants. Before every purchase, ask: Is this a future-securing need (think retirement, emergency fund) or a fleeting want? Prioritize essentials first, then allocate remaining funds for guilt-free fun. Bonus tip: Automate savings.
Set up automatic transfers to watch your future self smile while enjoying the present responsibly. It’s all about conscious choices, not deprivation.
Perry Zheng, Founder and CEO, Pallas
Adjust Psychological Money Views
As a prudent, avid saver with a deeply ingrained frugal mindset, I have previously found it difficult to spend freely. However, as I’ve gotten older, I’ve become much more mindful of the decreasing utility of money with age. Certain experiences in life (e.g., skiing or backpacking) are best enjoyed when you are younger. With this important realization in mind, I have changed my psychological view of money and now find it much easier to balance saving for the future and enjoying the present.
Dr. Mark Farrell (FIA), CEO, Associate Professor & Actuary, ProActuary Jobs
Embrace Conscious Spending
One important tip that I would emphasize for maintaining financial well-being is to embrace the idea of “conscious/mindful spending.” This means that one should be fully aware of how their money is being spent and ensure that what they buy is really consistent with their own principles and goals. It’s not all about cutting down on expenses but rather wisely spending on things that truly matter to you.
For example, if you value traveling, you can set aside money for it but reduce expenditures in other areas that are less significant. This way, you are able to enjoy your today while still making the necessary provisions for tomorrow.
Basically, this is a matter of informed choices when it comes to finances, leading to a life that is more meaningful and financially stable.
Lyle Solomon, Principal Attorney, Oak View Law Group
Implement 50/30/20 Budgeting
One great way to save for the future while enjoying the present is to create a budget that isn’t too deprivational but still prioritizes your savings goals. This is why the 50/30/20 budget is so popular. With this budgeting method, you allocate 50% of your income towards necessities like rent and insurance, 30% towards wants like dining out and entertainment, and 20% towards your savings goals. If you want to make faster progress on your savings goals to help you prepare for the future—like buying a home or saving for a child’s education—you can always flip the 20% and 30% categories. That way, you will save more money than you spend on fun expenses but will still have money available each month to spend on things that make life fun and exciting, like travel, concerts, and art.
One of the best ways to maintain financial well-being is to practice mindfulness when spending. You don’t have to say no to every fun purchase to find financial success. You just have to make sure you aren’t spending money for the sake of spending it or to cope with stress. Be thoughtful about how valuable each purchase you make really is and make sure you can actually afford it. The last thing you want is to take on high-interest credit card debt that will just lead to more stress and slow down your financial progress.
Erika Kullberg, Attorney, Money Expert, and Founder, Erika.com
Use Automated Savings Tools
Saving for the future while enjoying the present requires a strategic approach and discipline. I rely on budgeting apps that offer automated savings and expense tracking to manage my finances effectively.
One tried-and-tested tip is to allocate a portion of income to both short-term pleasures and long-term savings goals, ensuring I prioritize both immediate gratification and future security.
Additionally, setting up recurring transfers to savings accounts or investment portfolios through digital tools helps maintain consistency in saving habits.
Kripesh Adwani, Founder, Kripesh Adwani
Balance Energy, Experience, and Finance
Perhaps our adult life does feel like a series of balancing acts, each critical to our well-being. It’s true that we must make significant decisions in our personal, professional, social, and financial lives. Each choice can be viewed in isolation, or perhaps it’s better to try and foresee a more combined outcome. For example, the decision to seek a professional career necessitates additional decisions, including the choice of educational institution and the means to pay the expenses. This is clearly a challenge, as the future outcome is not illuminated, perhaps not for years, decades, or later.
Balancing your decisions here may require a focus on maintaining your financial well-being. The present time is more illuminated, with the choices and your set of options, likes, dislikes, and energy in clear view. You may choose to weigh these feelings more than the longer-term reality of the school loan repayments, career opportunities, and even your known familiarity with the tasks within that job. I suggest trying to strike a realistic balance here, using this tip: expend your energy as if more will come, expand your reach for experiences as if less will come, and expend your finances as if little more will come.
In practice, perhaps this tip would look like this: select an academic program that looks to challenge you to reach new heights, select opportunities within that experience that broaden your exposure, including meeting new people, and select a university that offers you both scholarships and reduced tuition for commensurate work, such as teaching assistant opportunities.
Ashley Kenny, Co-Founder, Heirloom Video Books
Practice Delayed Gratification
Depriving yourself of things you enjoy is not healthy. Usually, it affects people negatively to the point that they overspend, just because they feel extremely deprived. We could call it a relapse. So, it’s never wrong to spend on things you enjoy once in a while. What I can suggest is that you should practice delayed gratification. One strategy to practice this is to set yourself a target or goal. For instance, complete projects or meet your revenue goal for the month. And then, once you reach that goal, that’s when you reward yourself. You can also think long-term every time you consider spending on something that you don’t necessarily need.
Mark Damsgaard, Founder, Global Residence Index
Create a Balanced Budget
Saving for the future and enjoying the present may seem like conflicting goals, but it is possible to strike a balance between the two. It requires careful planning and discipline, but with the right approach, you can achieve both financial stability and enjoyment in your current life.
One tip for maintaining financial well-being while still enjoying the present is to create a budget that prioritizes both saving and spending. Start by setting aside a certain percentage of your income for savings, such as 10-15%. This will ensure that you are consistently putting money toward your future goals while still leaving room for present-day expenses.
Next, create a separate budget for discretionary spending, such as entertainment or dining out. This will allow you to enjoy the present without feeling guilty about not saving enough. It’s important to stick to this budget and not overspend, as that could jeopardize your long-term financial goals. Another tip is to find ways to enjoy the present without spending a lot of money.
For example, instead of going out for an expensive dinner, plan a picnic with friends or family. This way, you can still create memorable experiences without breaking the bank. It’s also important to regularly review your budget and adjust it as needed. If you find that you are consistently overspending in one area, try to cut back in another category to make up for it. This will help you maintain a healthy balance between saving and spending.
Brandon Beatty, Founder & CEO, Southern Hills Home Buyers
