One of the best ways to protect your money is to learn how to enjoy life without spending much. Think about song and dance, and how they've been around since humans started to drool. Each started long before people had worldly possessions, because you just kind of, well, sing or dance or both. And it didn’t used to be done for clicks and likes - song and dance were simply means of creative expression, story telling, and physical exertion, among other things. It could be done alone, together, happy, sad. Pretty simple, and basically free.
Song and dance are historical worldwide pillars for a reason. They can be great fun whether your broke or ballin'. But let’s say you’d really like an instrument to add to your musical repertoire. Well, that’s going to require some money. Or maybe the world can’t handle your groove (see above), so you’d rather go galloping in the woods. Well, that requires decent running shoes, and they’re rarely cheap. There are definitely are some healthy activities that aren't entirely free. That's why I suggest budgeting for PFE.
PFE: Passion, Fulfillment, Empowerment
While it's optimal to fill your time and color your life without spending money, PFE has a place in your budget. PFE stands for Passion, Fulfillment, and Empowerment. Don't get too picky about which bucket certain activities fall into, because a good activity may cover all three. For example, if you enjoy endurance events, racing may be a fulfilling and empowering way to pursue your passions. See what I did there? A good PFE activity will support your physical, mental, and/or social health.
Personally, I set aside about 1% of my gross income to fund my PFE activities (excluding travel, which I budget and track separately). Sure, I could invest that extra 1% and it would grow into a big number when I retire, but I plan to stick with what I'm doing. Since I'm already investing a healthy amount and in a decent financial position, I don't think that extra nest egg will provide my future life more value than what these healthy gifts to myself provide in the present.
My credit union allows members to set up “sub savings” shares of their savings account, and that’s where I dedicate money to my PFE. Any time something I want to do comes up, I pull funds from that account. That way I'm careful to ensure I don't sacrifice my other goals. My Passion activities often include live sports and concerts. They may also include outdoor recreational equipment, guitar gear, or more goodies for the home gym. My Fulfillment bucket usually goes to park passes, race entry fees, or even stuff related to my financial wellness content. For me, Empowerment typically looks similar to my Fulfillment categories. One counterexample, I recently used some PFE funds to buy a year-long subscription of Babbel so I could study Spanish. Tengo mucho que aprender, pero me estoy divirtiendo.
Your PFE should give you energy and benefit you in the near and long term. Here are some ways PFE can be healthy:
When people are fulfilled, they are more likely to have energy for other healthy habits
PFE activities often support your Four Circles of Health, with stress reduction being an example
PFE can indirectly improve work performance. Think about it - if someone shows up feeling recharged and content, they will be more present at work. In my experience, I start to resent my career when I feel like all I do is work. This helps diversify daily experiences.
PFE helps us ask less of our careers, thus increasing job satisfaction. It may introduce us to new friend circles or give us access to a sense of purpose outside of merely working to live. It's great when work is fulfilling, empowering, and supports your passion, but it's good to have other ponies in the race too.
PFE often teaches us to work hard, hone a craft, and/or learn something new. Learning how to learn, and enjoying the virtues of hard work in a low pressure setting, can both transfer into all aspects of life and money.
My only caution is that if you're not yet financially stable - too much debt and expense, too little saved, not earning enough, or some combination of all - well, maybe you don't get to do 1% or more toward PFE and travel yet. That's when it's most important to find ways to treat yourself without spending money. But as long as it's not causing financial harm, PFE is worth it.
Wrapping up
What are some of your go-to PFE activities that you can budget for? Gardening? Backpacking? Art? Baking? Lifting heavy things? Share in the comments below! For a list of more free and inexpensive hobby and PFE ideas, check out my book, Healthy Dough.
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