We make countless decisions every day, including ones regarding when and how we spend our money. When it comes to our money, it can be difficult to balance our need to save with our desire to spend. There are practical and emotional benefits to both spending and saving.
When considering what to do when faced with an opportunity to spend versus an opportunity to save, it can be beneficial to consider the ways our decided action will impact us:
- Benefit of Spending: A well-considered purchase can make your life more convenient and serve a much-needed purpose. You may need to replace a kitchen appliance or buy a back support so that you can work more comfortably. In addition, it can be a relief to have a car that’s newer and in good running order, versus one that is falling apart. Strategic spending can relieve stressors in our lives and deliver successful functionality.
- Drawback of Spending: Unfortunately, most of us have limited funds on-hand. Spending means we decrease whatever savings we have. In exchange, we may have a new item or memory of an activity such as dinner with friends. While this can create enjoyment in the moment, if we are suddenly faced with an emergency, we may wish we had more cash available. We may have to go into debt or face a tough situation if we do not have adequate savings. Even if we have a savings cushion, it is important to remember that the spending we choose today could have contributed to our retirement or emergency fund.
- Benefit of Saving: When we decide to save, whenever possible, we make future major purchases more achievable and avoid the chances of an emergency threatening our credit score or overall financial standing. Saving brings us closer to our first (or next) house as well as our ideal retirement. Disciplined saving can bring major stress relief to our present and guarantee a level of happiness for our futures.
- Drawback of Saving: If you focus on saving, you may have to think of ways to change your spending habits, including entertainment and leisure, if you want to save as much as you possibly can. You may not need to go as far as cutting out all forms of entertainment. At the same time, it’s worthwhile to challenge yourself to maintain as healthy of a lifestyle as possible, on as frugal of a budget as you can manage. While emphasizing saving can require extra mental effort, it isn’t a thankless task! Saving means peace of mind and meeting our financial goals on-time.
Consider sharing your goals with likeminded friends. It can make a big difference to have someone who can support you and share tips for strategic spending and saving. If you need further information about balancing your need to spend with your need to save, visit the Syncis blog at www.syncis.com/blog/ .