There is a constant struggle of spending vs saving: should you spend on your wants, or save the money instead?
Most people want to spend on their desires and often fail to prepare for the future. We usually tend to delay our worries especially on unexpected expenses, like health issues while conveniently patronizing the joy in spending on the spur of the moment. Circumstances good or bad are just around the corner and it pays to be prepared for what is yet to come. There is so much you cannot control in this life, but you can control your own financial security. It will help individuals to look forward to the future without worrying about being unprepared to financial crisis.
There is no way you can meet certain goals if you have your money revolves around debt and credit card-dependent spending. Being financially stable is a ticket to a better future, not just for you but your family also.
No doubt, people find it easier to spend rather than saving the money. Who would not love to upgrade the latest mobile phone or buy those pretty shoes? The hardest thing about saving money is to get started. Here is a realistic plan to start saving:
- Record your expenses
- Have a budget
Once you already determined your entire spending, this is the best time to organize and limit certain things but always make sure to consider factors like house maintenance, gasoline consumption, food expenses, etc. Create a savings category. Identify nonessentials that you can spend less on, such as entertainment, or dining out. Set your mind to put your savings as a regular expense, this is one of the good tips that really work.
Just like your medical insurance, it is pretty easy for the budget since it is a set of amount every month.
You are saving because you want something, it might be for emergency purposes, or for something you really need like a vacation, starting a family, or saving for retirement. Always make a choice that will make your money grow.
- Review your budget and see it grows
Once you keep track of your progress, you will be able to evaluate your savings activity. You can be able to identify where you were not able to follow the plan and from that, you can adjust accordingly. This will make it easier to fix some problems in the future too.
On the other side, there is also a thing called obsessing over saving or financial hoarding. You might be unconsciously doing these things:
- Feel guilty about spending
Don’t worry too much, building wealth is not the end of all. Taking too long to decide to get that thing that you think will hurt too much in exchange for better quality is over saving symptom. It is when you are keeping the money that you want to sacrifice even your basic needs.
Most people neglecting life insurance or even medical insurance because they think their money is better to invest in their savings account. Remember, there is a difference of being canny and being to stiff especially on your financial security.
- Working too hard or overworking
When you are obsessing over your savings, you tend to work too hard. Learn how to work smarter, not harder. You work hard for long hours just to achieve your goal because you have set your mind that you can get more money from it. To the extent that you overworked yourself thinking you can benefit more from it.
This is fine but take some time to assess your efforts if it’s beneficial for yourself. One of the most important investment is health and you might be neglecting it once you obsess over saving more money.
- Neglecting the little joys
Have you ever heard the hyperopia, a vision problem? It is when you can see distant objects very well but has difficulty in focusing on objects that are close. Just like most of us, it is okay to focus on the future but don’t compromise on the little things that make us humans.
Because you concentrate on saving more, you might be ignoring the most important part of your life which is your family. You tend to be tight with the finances that you don’t allow special moments like a family outing, birthdays, gatherings to happen that eventually can hurt your relationships.
Regrets are stronger than gratitude, don’t miss opportunities. Investing in your relationships is necessary as your savings and investments too.
There is a good balance in everything that we do, handling our finances well is being financially responsible.
Sacrificing your little joys just for the sake of a good future is over saving. Learn to address what is important and what is not. After all, we should invest in the quality of life now so we can live a beautiful and secured future.