It’s always nice to reward yourself to mark an accomplishment or to celebrate a special occasion. But a common mistake many people make is to think they have more “wriggle” room to spend on fun and wants than they actually do! Before we turn too eagerly to reward spending, having adequate savings in place is essential. Consider these three reasons to prioritize saving over reward spending:
- Repairs and Other Expenses: While you may be tempted to buy a new outfit for your next social event, or indulge in the latest version of your tablet, consider instead allocating these funds toward your emergency savings. We never know when we may suddenly encounter a costly but necessary car repair, or even have to cover rent after losing our job unexpectedly. Certain expenses can pop up out of nowhere, and if we don’t leave room in our budget to pay for these surprises, we risk disrupting our financial plans and security.
- Take Care of Yourself: Be wary of spending on fun activities at the expense of your health and wellness. For example, buying tickets to a major event, such as a concert, may seem like the perfect reward for a job well done. But if you do not have insurance in place, or room in your budget to buy healthy food, consider investing in your physical well-being, instead of making purchases that only provide temporary satisfaction.
- Achieve Long-Term Goals: By controlling our spending, we do more than keep ourselves healthy and prepared for any financial surprises. By saving, instead of spending every time we feel like it, we help stay on-track of meeting our long-term goals, such as homeownership and retirement. But if we overspend, we put ourselves at risk of postponing our major plans. Give yourself the future reward of a comfortable retirement by saving as much as possible now. That way, you’ll avoid having to postpone retirement or to dramatically reduce your standard of living during retirement.
Struggling to cover your necessities or to create space in your budget to reward yourself wisely? Consider either cutting expenses or increasing your income to help yourself rebuild your financial foundation.
Our wellness and security depend on our financial preparedness. While we all need to have a little fun sometimes, many of us would benefit from investing more time and money into our necessities before we spend on pure entertainment. To learn more ways to increase your savings and overall financial well-being, visit www.syncis.com/blog.