By Marc Shaffer
Helping a community member when they have an emergency need, being invited to a spontaneous concert or last-minute vacation, or finding an unplanned opportunity to invest.
Life is full of surprises and opportunities and while we can’t predict every one that will come our way, we can prepare ourselves financially to make the most of them or have the ability to participate when they do arise. The key is to manage your finances in a way that gives you the flexibility and freedom to take advantage of life’s unexpected moments without straining your budget.
Earlier this month, I had the unexpected opportunity to attend the Super Bowl. When you factor in not only the ticket prices, but the travel, lodging and other expenses, it wasn’t a decision I took lightly, but I had already planned for unexpected moments and was able to say YES without hesitation.
I used to plan for making annual international travel a priority, so I already had the mindset of saving for opportunities, but with a growing family, my mindset has shifted to planning for flexibility and freedom to seize other types of opportunities.
Here’s some ideas to get started:
Start with some foundation elements.
- Live Below Your Means – Cutting back on expenses, avoiding debt or keeping it controlled and being mindful of intentional spending can all help create flexibility to enjoy spontaneous moments.
- Have an Emergency Fund – This is the fund that allows you to take care of unexpected emergencies. If you allow yourself to spend on experiences but can’t cover emergencies, there’s not true flexibility there. Make a plan to know you’re not putting yourself in a dangerous position when spending elsewhere.
- Automate Your Savings – The easiest money to save is money you never see! When your paycheck hits your bank account each month, an automated savings setup can help direct the funds where you want them to go without leaving too much in your normal account. Even if it takes time, funding your accounts and investments systematically can create a large pool over time.
Then, prioritize the ability to be spontaneous.
How spontaneous does it sound to “plan” to be spontaneous? While the carefree attitude might not match the action, prioritizing the ability to be spontaneous is really about creating that freedom in your life to choose.
- Add a “Spontaneous Spending” Section to Your Budget – When you’re setting up those automated saving instructions, why not fund a “Fun” account, or at least make a category in your budget for this type of spending. This is not for the needs and essentials, this is money set aside for those unexpected moments and opportunities. When a spur-of-the-moment desire arises, you can pull from this account guilt free.
- Be Strategic About Memberships – Let your spending and memberships help create flexibility for the moments that matter. Consider credit cards that could offset part of your expense like having the cost of a flight or hotel covered with rewards or points (I used points to cover our Super Bowl flights). Consider joining hotel, car rental or other loyalty programs that will offer discounts in the future. This can help minimize the financial impact of things that come up.
Lastly, evaluate the opportunities as they come.
While it’s important to be prepared to take advantage of unexpected opportunities, it’s also essential to evaluate whether they makes sense for you financially. Is it something you’ll regret not doing later? Does it align with your current goals? Always consider if the opportunity is worth the cost before making a quick decision. Financial preparedness gives you the freedom to make informed choices, not just impulsive ones.
Managing your finances in a way that allows you to take advantage of unexpected fun or to make a meaningful unplanned contribution to a cause you care about is all about balance. By building savings, budgeting for spontaneity, and maintaining flexibility, you can free yourself from financial stress and embrace life’s surprises with confidence. The goal is to create a financial system that supports both your long-term aspirations and your ability to seize unplanned opportunities without hesitation. After all, life’s best moments are often the unplanned ones—and with the right financial foundation, you can enjoy them without worry.