It may sound counterintuitive to splurge or financially reward yourself for meeting specific financial goals. However, rewarding ourselves for achieving major milestones is a great way to sustain progress, recharge yourself, and acknowledge your overall journey. Whether your reward budget is $5 or $500, set rewards for yourself that align with your goals and with what you like.
FINANCIAL MILESTONES TO CELEBRATE
Paying off credit card or student loan debt.
Maxing out on an annual retirement contribution (such as your HSA, IRA, or 401(k)).
Paying off your mortgage.
Reaching a specific savings goal, such as a 12-month emergency fund, mortgage down payment, or wedding budget amount.
Successfully asking for a raise, negotiating a pay bump, or getting a promotion.
Reaching a specific net worth, such as 20% of your FIRE number.
IDEAS FOR REWARDING YOURSELF
Treat yourself to something that you want, such as a dinner out, a gadget you've been eyeing, or a small luxury item.
Travel. A short trip or weekend getaway to celebrate your achievement. A quick drive to the beach or mountains with a picnic counts!
Invest an specific amount of your earnings towards something that aligns with long-term financial goals. This could be a specific stock, ETF, REIT, etc.
Upgrade something that you regularly use, such as your vehicle, work laptop, a home appliance, or your living space.
Professional development, such business courses, workshops, and/or a certification to give your career a boost and increase earning potential.
Donate to a cause that you care about, or pay it forward by helping out someone who is in financial need.
Boost your savings or investment accounts.
Spa day: Get a massage, a facial, a manicure, a haircut, or all of the above.
Consult with a financial advisor or coach to discuss your goals, ensure that you're on track, and evaluate other strategies to sustain progress.
Improve your skills. This could be learning a new skill that can boost your marketability (such as a therapist completing EMDR training). You could also choose something fun that you see as a potential retirement hobby, like a fishing class.
Please share any ideas you have for celebrating major financial milestones!