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Academy Course #4: Smart Spending on Fun and Maximising Your Income

118118 Money Team  •  November 27, 2024

Welcome back to the 118 118 Money Financial Fitness Academy! After focusing on saving, budgeting, and daily financial decisions, we’re now moving on to some of the more enjoyable aspects of life. In this course, we’ll explore how to spend smartly on leisure and entertainment without breaking the bank, and how to maximise your income and career growth for financial security. We are here to help you achieve Financial Fitness.

Let’s dive in!

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  1. Smart Spending on Leisure and Entertainment: Enjoying Life on a Budget

Leisure activities and social outings don’t have to come at the expense of your financial goals. There are plenty of ways to have a good time without overspending. Let’s look at some creative ideas for family fun and socialising with friends, all while keeping costs low.

Affordable Family Activities

Spending time with family doesn’t have to mean splurging on costly outings. With a bit of planning and creativity, you can make family time both fun and affordable.

  • Go on a Park “Crawl”: Plan a route to visit several parks in one day. Kids love the variety, and it’s an inexpensive way to spend time outdoors. Pack a picnic with fun snacks and drinks to make it an even more memorable day. Not only will you save on restaurant bills, but you’ll also enjoy quality time together.
  • Stream Movies at Home: Rather than going out to the cinema, create a cosy movie night at home with homemade popcorn and flavoured snacks. Streaming services offer lots of options, and watching at home allows you to control the costs—no overpriced cinema snacks!
  • Build Savings with No-Spend Days or Weekends: Try designating one weekend a month as a “no-spend” weekend. Instead of splurging, find free or low-cost activities like hiking, biking, or exploring local events. These small adjustments help you build a habit of saving while still enjoying life.
  • Look for Online Discounts: Before heading to the cinema, a theme park, or any event, check online for discounts. Many venues offer family packages, seasonal discounts, or promo codes that can save you a good amount on tickets. And don’t forget to bring your own snacks, if allowed, to avoid inflated concession prices.
  • Host Get-Togethers at Home: Instead of going out to eat, invite friends or family over. Hosting at home is often much cheaper than dining out, and you can tailor the atmosphere to make it a special experience. A potluck dinner is a great way to share costs, and it allows everyone to contribute something to the meal.
  • Choose Activities with Lasting Benefits: If you’re tempted to spend on a pricey activity, consider whether it has lasting value. Instead of going to the pub, you might opt for something beneficial like exercising, studying for a qualification, or budgeting. These alternatives boost well-being and may even contribute to future goals.

By choosing affordable, value-driven activities, you can enjoy time with family and friends without feeling the financial pinch. Money management tips can be fun.

Image for Social Outings with Friends

Social Outings with Friends

Socialising is important, but it can quickly add up if you’re not careful. Here are some ways to stay social without breaking the bank.

  • Be Open About Your Budget: Let your friends know that you’re watching your spending. This doesn’t mean you have to miss out, but being transparent helps manage expectations. Your friends may even be inspired to join you in seeking out budget-friendly outings!
  • Take Advantage of Happy Hours and BYOB Nights: Many bars and restaurants offer happy hour deals or BYOB nights. These options can significantly reduce the cost of going out, letting you enjoy a nice meal or drink without the usual markup.
  • Give Experiences Instead of Gifts: When celebrating friends’ birthdays or special occasions, consider giving an experience rather than a material gift. For example, instead of multiple outings, agree with friends to go for one memorable dinner or plan a special activity once a year. It’s a meaningful way to celebrate without stretching your budget.
  • Try Dry January: Participating in Dry January (or any other month) is a healthy way to save money and reset. Skipping alcohol for a month not only cuts costs but also gives you a chance to evaluate your spending habits.
  • Use Cost-Splitting Apps: Avoid the awkwardness of chasing friends for reimbursements by using apps that split costs instantly. Apps like Splitwise make it easy to share expenses for group outings, ensuring everyone pays their fair share.
  • Don’t Say Yes to Every Outing: It’s okay to say no. Social activities can add up, and you don’t have to attend every event. Prioritise the outings that matter most to you, and don’t feel guilty about skipping the rest.
  • Host Friends at Home: Similar to family gatherings, hosting friends at home can save a lot compared to dining out. Plus, you can create a more relaxed, intimate setting where everyone feels comfortable. Whether it’s a game night or a potluck, at-home gatherings are often more memorable and meaningful.

Smart socialising is all about balancing quality time with financial responsibility. With these tips, you can keep friendships strong and fun without overspending.

  1. Work, Income, and Career Management: Boosting Your Earning Potential

A key part of financial fitness is increasing your income. Whether through a raise, side gigs, or optimizing job benefits, there are many ways to grow your earnings. Here’s how to make the most of your career and income.

Employment Stability and Growth

Stability in your job is important, especially when planning your financial future. Maximising your current role while exploring opportunities for advancement can boost both your income and job satisfaction.

  • Keep Your Current Job Until You Have a New One: If you’re not satisfied with your job or boss, don’t rush to quit. Stay in your role until you’ve secured another position. Job transitions can be financially risky, so maintaining stability is key.
  • Seek Overtime Opportunities: If your workplace offers overtime, sign up whenever possible. Overtime pay can provide an immediate income boost and may also highlight your dedication and work ethic to your employer.
  • Maximise Employer Benefits: Many employers offer benefits like childcare assistance, health checks, and professional development opportunities. Take full advantage of these perks—they’re essentially extra income in non-cash form.
  • Check Your Tax Code: Inaccurate tax codes can lead to unexpected bills. Review your tax code annually, and look for potential reliefs related to childcare, pension contributions, or charity donations. These tax reliefs can reduce your taxable income and help you keep more of what you earn.
  • Have a Family Emergency Plan: Illnesses and other emergencies can disrupt your work life. Ensure you have a plan in place for who will look after your kids if they’re unwell, so you don’t have to miss work or pay for last-minute childcare.

Being proactive in managing your current employment can help you build a more secure financial future and help you make the most of the benefits and opportunities available to you.

Maximising Income Outside Your Main Job

Sometimes, it’s necessary to look beyond your current job to increase your income. Side gigs, upskilling, and negotiating for raises are all strategies that can lead to financial growth.

  • Explore Side Gigs or Freelancing: With the rise of the gig economy, side jobs are more accessible than ever. Consider freelancing, part-time work, or even selling handmade items online. A side gig can be a flexible way to bring in extra income without quitting your main job.
  • Invest in Upskilling: Consider taking courses or certifications that can enhance your career and make you eligible for promotions or higher-paying roles. Upskilling is an investment in yourself that often pays off with increased job opportunities.
  • Be Proactive About Asking for a Raise: If you’re doing good work and adding value, don’t be afraid to ask for a raise. Prepare a solid case by highlighting your contributions and any additional responsibilities you’ve taken on. Approach the conversation with a positive attitude and be prepared to discuss specific achievements. But do not be disappointed if you do not get it. It is a delicate subject and so it must be approached carefully.
  • Manage Workplace Relationships: Maintaining positive relationships at work can open doors to new opportunities. Building rapport with colleagues and managers may increase your chances of being recommended for promotions or special projects that come with financial rewards.

Growing your income isn’t only about getting paid more in your current job; it’s about exploring all the avenues available to you, both inside and outside the workplace.

Conclusion

This course has shown that having fun, building relationships, and growing your income don’t have to be at odds with financial responsibility and achieving financial health. By choosing budget-friendly activities, setting boundaries on social spending, and maximising your income potential, you can enjoy life and build a more secure financial future.

Remember, financial fitness doesn’t mean cutting out the things you love—it means spending intentionally, investing in yourself, and finding balance. Start applying these strategies today, and keep moving forward on your journey to financial independence. Plan for financial success by taking control of your finances and managing your spending.

If you have not read our article titled “Build a Brighter Financial Future: Start Your Journey to Build Today”, click here to access it. This article will help you understand how taking control of your finances can be empowering. It will also help you think about how to make conscious, SMART and ACTIVE choices with your spending. Stop obsessing over your credit score and focus on improving your underlying financial behaviours.

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