Yahoo Finance 5 Smart Solutions To Ease the Financial Burden of Your Leisure Choices
There’s nothing quite like splurging on something you love after a long week.
A fancy meal at a trendy new restaurant, those new pair of shoes you’ve been eyeing, theater tickets to your favorite play — all of these are enjoyable leisure activities we depend on to feel happy and content.
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But, they all require money and careful spending.
According to experts, you can ease the burden of these expenses by planning ahead. Justin Godur, CEO and founder of Capital Max, says it’s all about getting creative to afford your favorite activities even in these challenging times.
Read below for more expert tips. Also, see some budget-friendly summer activities for retirees.
Strategically Budget for Leisure
“I always advocate for strategic budgeting,” Godur said. “First, prioritize your spending by categorizing your expenses. Allocate a fixed percentage of your monthly income specifically for leisure. For example, if you set aside 10% of your earnings, you can enjoy activities guilt-free. Utilizing budgeting apps like Mint or YNAB can help track and manage this allocation effectively.”
Rhett Stubbendeck, CEO and founder of Leverage Planning, is another expert who recommends this approach.
“Budgeting specifically for leisure activities can make a big difference,” he said. “I believe in setting aside a small portion of my monthly budget for fun. This doesn’t have to be a lot — even $50 a month can add up. For instance, I allocate a portion of my budget for dining out or movie nights. This way, I can enjoy these activities without worrying about overspending.
“Knowing these costs are planned for makes the experience more enjoyable.”
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Maximize Rewards and Discounts
Experts recommend leveraging credit card rewards and loyalty programs as another savvy approach.
“I often recommend choosing cards that offer points or cash back on entertainment and dining,” Godur said. “Accumulated points can be redeemed for free or discounted experiences.”
Additionally, he says to always be on the lookout for discount websites like Groupon or Rakuten, which offer significant savings on leisure activities.
“Let’s talk about leveraging rewards programs and credit card points,” Stubbendeck said. “Personally, I’ve found this to be incredibly effective. I use a credit card that offers cash back and travel rewards. For example, last year, I accumulated enough points from regular spending to cover a family trip.
“By simply using my credit card for groceries, gas, and other everyday expenses, I was able to fund our vacation flights. For me, it’s a simple way to make your daily spending work for you.”
Explore Budget-Friendly Leisure Options
“Exploring local experiences can be both enjoyable and cost effective,” Stubbendeck said. “Instead of planning expensive vacations, try discovering what your local area has to offer.
“My family and I made a tradition of visiting a new local park or museum each month. Last summer, we found a beautiful state park just an hour away that we’d never visited before. The entry fee was minimal and we spent a fantastic day hiking and picnicking. My family still talks about it. It’s amazing how many hidden gems are nearby that we often overlook.”
Freelance for Fun Funds
Godur advises to consider freelancing or side gigs tailored to your interests.
“I’ve seen many individuals turn their hobbies into income streams, whether it’s tutoring, graphic design or writing,” he noted. “Platforms like Upwork and Fiverr provide opportunities to monetize skills, enabling you to fund your leisure activities without dipping into your primary income.
“By implementing these strategies, you can continue to enjoy your leisure activities without financial strain,” he added. “I’m passionate about helping people balance financial responsibility with enjoyment, ensuring that rising costs don’t dampen their quality of life.”
Utilize Insurance Coverage
Easing the financial burden of your leisure choices also entails thinking ahead to the future.
“One effective approach is to leverage insurance policies to cover leisure-related risks,” said Ben Klesinger, finance executive, co-founder and CEO of Reliant Insurance Group and Helping Hand Financial.
“For instance, if you enjoy renting equipment like kayaks or ATVs, consider a renters liability policy.”
He said this can mitigate expensive repair or replacement costs if these items get damaged, allowing you to enjoy your activities without financial stress.
“High-net-worth insurance can tailor coverage to your unique lifestyle, such as adding liability for your secondary homes or extended coverage for international travel,” Klesinger added. “This approach not only secures significant assets but also frees up your regular budget for leisure pursuits by mitigating the risk of catastrophic financial loss.
“Whether it’s covering your household help or ensuring your expensive hobbies are safeguarded, understanding and maximizing these insurance options can provide both safety and financial flexibility.”
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This article originally appeared on GOBankingRates.com: 5 Smart Solutions To Ease the Financial Burden of Your Leisure Choices
