How Sugar Babies Budget: Managing Finances While in a Relationship

Wondering how sugar babies manage money in order to build personal wealth and live a comfortable lifestyle? You’re in the right place!

From filing taxes to monthly budgeting to long-term goals, we’re covering everything you need to know about financial planning as a sugar baby.

Understanding the legal side of things

One thing that many sugar babies get confused about is the legality of their income. But here’s a basic rundown to help you understand your responsibilities as a sugar baby:

• You have to declare your income as a sugar baby. Just like a professional dancer or restaurant worker has to report their tips, you’ll be expected to keep track of and disclose any and all income that you receive from being a sugar baby. This includes gifts that are included as part of your arrangement.
• Most of what you might spend on your sugaring practice wouldn’t be considered a tax write-off. You might find yourself spending your own money on things that you would use for your sugaring practice. For instance, clothes, shoes, beauty treatments, and more. Unfortunately, even though you might not otherwise purchase these things, most of these expenses don’t count as write-offs. So, be careful about pushing the envelope here.
• If you’re unsure of how to file, reach out to a CPA. Tax professionals are unlikely to bat an eye at the source of your income (and if they do, feel free to find someone else immediately.) A good CPA will make your life so much easier and put you on the right path for long-term financial stability and growth.

Paying off existing debt

Whether you have student debt, credit card payments, a car payment, or a mortgage, one of the best things you can do with your sugar baby income is start paying off your debts.

That’s because your existing debt is building up interest by the day (that’s interest that you will have to pay off!) So, a smart financial decision would be to prioritize reducing your debt before thinking about making any other big purchases or putting your money into savings.

Now, if you have multiple sources of debt, you might wonder where to begin. Financial experts recommend either one of two ways to start paying it off:

• The snowball method. With this tactic, you’re going to prioritize paying off your smallest debt completely while making minimum payments on larger debts. Then, when that small debt is paid off, channel the money that you had been using to pay it off toward your second smallest debt. You can see how, as you go, the amount you’re paying towards your loans snowballs.
• The avalanche method. Another smart tactic for paying off debt is the avalanche method, in which you prioritize paying off the debt with the highest interest first. This is considered the most efficient way to pay off debts because it will allow you to reduce the amount that you’ll pay in interest over time.

If you’re really struggling with debt, it might be worth looking into a debt relief program or working with a debt counseling agency to learn more about your options.

Setting up a “rainy day” fund

As a sugar baby, you might already know that there can be times of abundance and times of scarcity. And, when you’re between sugar relationships or you need to take a break for personal reasons, having a “rainy day” fund can be an important safety net.

This is money that you set aside to use in times of need, such as an unexpected expense from an injury, car accident, or other unpredictable situation.

Here are a few tips for getting started with a rainy-day fund:

• Keep this money separate from your normal spending money. This will ensure that you’re not dipping into your savings unintentionally. And, it will also allow you to see your savings grow, which is a great way to stay motivated!
• Start small. Many sugar babies get intimidated by the idea of starting a savings account, but you don’t have to put so much pressure on yourself. A few dollars, or spare change here and there, can start to build up the momentum.
• Aim for an emergency fund that covers about three months or more of living expenses. There’s no set amount that you have to have in your rainy-day fund, but most financial advisors would recommend the equivalent of three months of living expenses or more. This should be enough to cover most unexpected costs, including car troubles, or the purchase or repair of large appliances. Or, it could provide you with enough money to support yourself if you need to look for another job after losing your previous one.

Diversifying your income

As we mentioned, sugaring can come with ups and downs in terms of income, and one way to counter the financial roller coaster is by diversifying your income. There are many ways to do this:

Date more than one sugar daddy at a time

Not all sugar babies have the desire or bandwidth to manage multiple sugar relationships, but this can be a good way to make your practice more stable. That’s because, if one sugar daddy decides to end a relationship out of nowhere or falls on hard times, you won’t be left in the lurch without their allowance.

Get a second job

Having a non-sugaring job has a lot of benefits, both financially and emotionally. On the one hand, there’s the obvious financial advantage that comes with a regular paycheck.

Additionally, as long as you generally like your job, you’ll find that there are many other benefits to non-sugaring work, as well, including camaraderie, a sense of responsibility, health benefits, and more.

Having employment through a business can also be a benefit when you’re looking to submit documentation for housing or applying for a loan.

Renting out your home or subletting

If you own property or you have a landlord that is okay with you subletting, opening up a room in your home can be a great way to have some extra money coming in month-to-month. Be aware that this isn’t necessarily passive income. Especially if you’re a landlord, you’ll need to spend time and money on taking care of your renters and maintaining your property.

Invest

We’ll talk more about this in a moment, but putting your allowance into investments can be a way to diversify your income stream.

Prioritizing your healthcare

Being able to take care of your physical and mental health is closely linked with smart financial planning. So, make sure that you’re thinking about healthcare as you put together your sugar baby budget. In general, you’ll want to consider:

• The appropriate healthcare plan for your age and health status.
• Looking into healthcare options through non-sugaring employment. If you sugar part-time, your other employment might offer healthcare options.
• Scheduling routine health screenings. Preventive care is not only crucial to your health and well-being, but it can also save you money. That’s because catching certain risk factors or health conditions early can mean that you’re able to treat them before they become urgent.
• Working with a case manager to maximize your benefits and cut costs. If putting together a healthcare plan is overwhelming for you, talking to a case worker can be helpful. You can find case workers through your insurance, hospital, or at your local social work office.
• Opting for included healthcare benefits, such as gym memberships or free wellness classes at your local recreation center.

Investing in your sugaring practice

A common mistake that many sugar babies make is that they don’t consider ways that they can invest in themselves as a sugar baby. But, leveling up your sugaring practice, you can benefit from higher allowances, invitations to more exclusive events, and many other perks.

Here are a few expenses that can help to improve your sugaring status:

Updated wardrobe and accessories

While many sugar daddies will be interested in meeting a partner they can connect with emotionally and intellectually, looking good is an obvious advantage in the world of sugaring.

And, if you’re able to elevate your fashion sense, make-up skills, and luxury-brand accessories, you’ll find that it will be easier to connect with the kind of ultra-wealthy sugar daddy you’ve always dreamed of.

Technology

Whether you want to pursue virtual sugar relationships or are looking to impress your sugar daddy with high-quality selfies, investing in the latest gadgets can be a good financial move.

That doesn’t mean that you should go all out with the most expensive DSLR camera or recording equipment. But, setting aside some money for a ring light or tripod could be a good way to level up your sugaring practice.

Beauty treatments

Every sugar baby should decide for themself what kind of beauty treatments are appropriate for them. Some will only want to invest in the standard minimum treatments, such as the occasional professional haircut or mani/pedi. Others will be interested in anything from Botox to facial or body reconstruction surgery.

At the end of the day, procedures and treatments are optional, but some sugar babies see them as an investment in their sugaring persona and lifestyle.

Education.

Education, as it pertains to sugaring, covers a wide range of different avenues. On the one hand, you might consider going to business school so that you can learn more about how to be financially successful or start business ventures. Or, you might invest in learning a new language so that you can connect with a wider pool of available sugar daddies. Even taking classes or workshops to learn things like cooking, massage, fashion design, and networking can all make you more competitive as a sugar baby.

Mental health

We don’t talk enough in the sugaring world about the benefits of investing in mental health and wellness. But it can be a fundamental way to ensure that you have the energy, motivation, and empathy needed to care for yourself and a partner in a sugar relationship.

There are many ways to factor in mental wellness in your budgeting goals. Mental wellness self-care might look like finding a sugar-positive therapist, joining a support group, or paying for a meditation retreat. Or, it could include paying a monthly subscription for a meditation app or a life coach.

Setting future financial goals

When you’re just starting to think about how sugar babies manage money, it can be easy to focus only on the here & now. After all, you might have debts that need to be paid off now or upcoming health costs to contend with.

But that doesn’t mean that you should put off considering some long-term financial goals. After all, even if you’re not able to accomplish these goals in the immediate future, having them on your mind will change the way you go about spending day-to-day.

Here are a few common financial goals that sugar babies can consider:

Buying a home

It’s well-known that becoming a homeowner instead of a renter can be a huge financial benefit. But there are definitely right and wrong ways to go about buying a home, according to the financial pros. Here are a few pieces of advice that sugar babies should keep in mind:

• Wait until you’re debt-free and have a sizeable rainy-day fund before starting your search.
• Keep up-to-date on the housing market so that you can buy at a good time.
• Research your mortgage options based on your savings and current and future income.
• Think about buying a home as an investment.
• Work with a trusted real estate agent.

Travel

Nowadays, plenty of people prefer to set future financial goals of traveling the world rather than buying a house. And this is a perfectly valid goal to work towards as a sugar baby!

On the one hand, you can set aside a travel fund with your earnings from your sugar relationships. Or, you can organize your sugaring practice around your desire to travel by looking for partners who can cover your travel expenses.

Transportation

Most places outside of major cities will require you to have a car, which is why many sugar babies have car ownership on their list of financial goals. This is especially true if you’ve always only been able to afford older used cars or lease a car instead of buying a new one.

As with buying a home, buying a car should be a step that you take only when you’re financially able to do so and have done the necessary research to ensure that you’re making a good investment. In other words, you’ll want to buy a car that gets good gas mileage, is reliable, and can comply with your lifestyle (i.e., family-friendly if you have kids or adaptable for people with mobility issues, etc.)

Making smart investments

When it comes to investments, there are a few different ways that you can think about spending your money from sugaring.

For one thing, you can work with a financial advisor—perhaps someone recommended by your sugar daddy or a professional you trust—to put your money into investments with the highest likelihood of success. A financial advisor is an expert in market trends, taxes, financial planning, and retirement plans. And, they can help you feel confident that your money is being moved around wisely in order to grow your personal wealth.

Another option would be to stick with very safe, stable investments that don’t necessarily require the intervention of a financial advisor (although you could certainly still use one if you wish). This could mean putting your money into high-yield savings accounts, CDs, Bond Funds, Annuities, and other low-risk investment options.

Protecting your money in the long term

Once you start building your own wealth and making smart investments in yourself and your future, there are a few things you can do to protect your financial stability over time. Here are a few ideas:

Make independent financial decisions

Sometimes, sugar babies feel compelled to allow their sugar daddy, family members, or other people in their lives to influence their financial decisions. But we would caution you to protect your financial independence as much as possible. After all, it can be great to accept advice from the money-smart people in your life. But being too willing to follow the guidance of others can make you vulnerable to monetary manipulation.

Protect yourself against financial scams

Anyone with money to spend can be the victim of financial fraud, and you’ll want to save your hard-earned income against scammers! Some key ways that you can keep your finances safe include:

• Not sharing your sensitive personal details with anyone.
• Being selective about how you receive money (i.e., in cash or through private cash-sharing apps).
• Monitoring your bank statements to keep an eye out for suspicious activity.
• Updating your online passwords regularly.
• Staying up-to-date on the latest online scams, especially within the sugaring community.

Have a will

Especially as you start to build your own wealth, having a will is one of the smartest financial decisions you can make. It will ensure that everything you’ve earned through your time as a sugar baby is protected and passed on to your loved ones.

Even if you think that you don’t have enough savings or assets to justify a will, do it anyway!

Now you know how sugar babies manage money to build their own wealth!

In this article, we’ve talked about everything from budgeting to debt reduction to protecting your wealth for future generations. So, how are you feeling about your own financial independence as a sugar baby? By making some small changes, you can empower yourself to start building your own wealth and living the life you want!