Skip to main content

ads3

What Happens to Unused 529 Funds? Exploring Your Options

  Hold onto your wallets, future scholars, and savvy savers! We're about to dive deep into a topic that's often shrouded in mystery, whispered about in hushed tones, and generally treated like the financial equivalent of the Bermuda Triangle: What in the actual heck happens to your unused 529 funds? Spoiler alert: They don't just vanish into a black hole of regret and lost potential. You, the diligent parent, the visionary grandparent, the super-aunt who believes in education more than anyone else, you did the right thing. You socked away money into a 529 college savings plan – that glorious, tax-advantaged unicorn of investment vehicles. You dreamed of tuition bills magically shrinking, of textbooks being bought without a single bead of sweat, of your precious protégé strolling across a graduation stage debt-free. But then, life, as it so often does, pulled a plot twist worthy of a Hasan Minhaj special. Maybe little Timmy got a full-ride scholarship to Harvard (go Timmy!)...
Post a Comment

How Much Fun Money Per Month?



Budgeting isn’t just about paying bills and saving—it’s also about enjoying life. “Fun money” is the portion of your budget set aside for entertainment, hobbies, and personal enjoyment. But how much should you allocate?

1. The 50/30/20 Rule – A Popular Guideline

A well-known budgeting rule, the 50/30/20 rule, suggests:

  • 50% of income for needs (rent, groceries, utilities, etc.)

  • 30% for wants (this includes fun money!)

  • 20% for savings and investments

🔹 Example: If you earn $3,000 per month, you’d allocate up to $900 for wants, including fun money.

2. Fun Money vs. Wants – What’s the Difference?

Your “wants” category includes things like dining out, shopping, and streaming services. Fun money is a subset of this, specifically meant for spontaneous spending like concert tickets, video games, or weekend getaways.

How Much Fun Money Should You Have?

💰 10% of income: A moderate approach for guilt-free enjoyment. 💰 5% of income: A more conservative strategy if you’re aggressively saving. 💰 15%+ of income: Possible if you have minimal expenses or high earnings.

3. Adjusting Fun Money Based on Lifestyle & Goals

Low-Income or Debt-Focused Budgeting

  • Reduce fun money to 5% or less and redirect extra funds toward debt repayment or savings.

  • Prioritize free or low-cost activities (hiking, local events, DIY hobbies).

Financially Stable & Comfortable Budgeting

  • Keep fun money at 10-15% to enjoy life while maintaining savings.

  • Plan for bigger experiences like travel without derailing financial goals.

High-Income & Financial Freedom Budgeting

  • If savings are on track, you can afford 20%+ for fun money.

  • Focus on value-driven experiences rather than impulse spending.

🔹 Example: In Norway, people often prioritize “friluftsliv” (outdoor living) as their fun money spending, opting for skiing or hiking instead of material purchases.

4. Fun Money Without the Guilt

🎯 Set a monthly cap and track spending with apps like Mint or YNAB. 🎯 Consider a fun money envelope for cash-based spending. 🎯 Use cashback rewards or side hustle income to boost fun money.

Final Thoughts

Allocating fun money ensures you enjoy life while staying financially responsible. Find a balance that fits your income, goals, and lifestyle—whether that’s 5%, 10%, or 15% of your income.

🔹 How much fun money do you budget each month? Let us know in the comments! 🎉💰

Comments

Post a Comment

Popular posts from this blog

YNAB Cost: Is It Worth the Investment for Your Budget? 💳📊

Budgeting tools aren’t free… or are they? Let’s talk about whether YNAB’s price tag delivers real value for your money—or if you’re better off sticking with free options. When it comes to budgeting apps, YNAB (You Need a Budget) is like the cool kid in town. It’s smart, efficient, and has helped thousands of people break the paycheck-to-paycheck cycle . But unlike some other budgeting tools, YNAB isn’t free. So, the big question is: Is it worth the cost? Let’s break down the price, what you’re getting for your money, and whether it’s the right tool for your budget. How Much Does YNAB Cost? 💸 YNAB offers a subscription-based pricing model , and here’s the latest breakdown: Monthly Plan: $14.99/month Annual Plan: $99/year (billed annually)—that’s a savings of about $80 per year compared to the monthly option. For new users, YNAB offers a 34-day free trial —no credit card required. That gives you a full month to see if it’s a game-changer for your finances. Is It Expens...
Post a Comment
Read more

How to Build a Personal Finance Plan Using the Baskets Saving Method

Introduction Managing money without a plan is like trying to juggle with your eyes closed—it’s messy and stressful. One of the smartest ways to take control of your finances is by using the Baskets Saving Method , a simple yet powerful strategy that helps you allocate your income into different categories. This approach ensures your money is working for you, covering both needs and future goals. Let’s break down how to create a personal finance plan using this method! What is the Baskets Saving Method? The Baskets Saving Method involves dividing your income into different "baskets" (or accounts) based on specific financial goals. Instead of keeping all your money in one lump sum, you allocate it strategically to ensure financial stability and growth. Step 1: Identify Your Financial Baskets Here are some key baskets you should consider: Essentials Basket (50-60% of Income) – Covers rent/mortgage, utilities, groceries, transportation, and insurance. This ensures you...
Post a Comment
Read more

How to Create a Monthly Budget That Actually Works

  "I’ll never forget the day I realized I had no idea where my money was going. I was standing in line at the grocery store, credit card in hand, praying it wouldn’t be declined. Payday was still a week away, and my bank account balance was a terrifying $12.56. I had a good job, steady income, and yet I felt completely out of control. That’s when I decided something had to change." Sound familiar? If you’ve ever felt like your money disappears as soon as it hits your account, you’re not alone. Budgeting can feel like a chore—or worse, a restriction—but when done right, it’s the exact opposite. A budget isn’t about limiting your freedom; it’s about giving you the freedom to spend on what truly matters to you. In this post, I’ll walk you through step-by-step how I created a monthly budget that not only works but also allowed me to save for my goals and finally feel in control of my finances. Let’s dive in! Step 1: Face Your Finances (Yes, Even If It’s Scary) I’ll be hone...
Post a Comment
Read more