the 10% entertainment rule: saving for a better future

Many people dream of having enough money to live comfortably, both now and in the future. But achieving this dream can be challenging if we're not careful with how we spend our money today. One key to financial success is following the 10% entertainment rule.

This rule suggests that we should spend no more than 10% of our monthly take-home pay on fun activities and items. These include things like vacations, eating out, going to movies, buying games, or getting new TVs. It might not sound like much, but this limit can make a big difference in our financial health.

Why is this rule important? Many people who have money troubles often spend way more than 10% on entertainment. They might think, "I work hard, so I deserve to enjoy life now." This way of thinking focuses on having fun today without worrying about tomorrow. While it's true that we should enjoy life, we also need to think about our future selves.

Living only for today can cause problems if we end up living a long life. Imagine reaching old age and not having enough money saved up. That could mean struggling to pay for basic needs or having to work when we'd rather be retired. By following the 10% rule, we're setting ourselves up for a more secure future.

So how can we stick to this rule? First, we need to track our spending. Write down everything you spend on entertainment for a month. Alternatively, you can use a monthly budgeting app such as EveryDollar to track your expenses. You might be surprised at how quickly those costs add up. Once you know where your money is going, you can start making changes.

Look for ways to have fun that don't cost much money. Instead of eating out, try cooking a special meal at home. Rather than going to the movies, have a movie night with friends. Instead of an expensive vacation, explore local attractions or go camping. There are many ways to enjoy life without spending a lot.

It's also important to save the money you're not spending on entertainment. Put it into savings or investments for your future. Over time, this money can grow and provide a safety net for when you need it.

Remember, following the 10% rule doesn't mean you can't have fun. It just means being smart about how you spend your money. By balancing enjoyment today with planning for tomorrow, you can work towards a long, financially secure life.

In the end, the choice is yours. You can live only for today and hope everything works out, or you can make a plan that lets you enjoy life now while also preparing for the future. The 10% entertainment rule is a simple way to start building a more secure financial future.