How To Balance Spending And Saving

Finding the perfect balance between spending and saving isn’t always easy – it’s definitely like walking along a tightrope, especially when life tends to throw a lot of temptation at us all the time, like holidays, new gadgets, and loads of things we need (or don’t need but want). However, the truth is that it’s entirely possible to enjoy life now and save for the future at the same time, and the trick is to balance the two out. With that in mind, here are some tips for learning how to balance spending and saving so that neither feels like something to be guilty about. Read on to find out more. 

Seat Clear Goals For Both

When you think about it, balance is all about knowing where you’re heading and what your goals are, which is why it’s so important to set clear goals for both things – in that way, your money has more of a purpose, whether you’re spending or saving, and that’s going to help motivate you to do the right thing. 

Perhaps you’re saving for a big purchase like a Dodge car that you’ve wanted for ages – that can be your savings goal. And then you can put aside the money that’s not needed for savings or essentials to be your fun money, and you can spend that quite happily without feeling guilty – that’s your fun money and you can buy whatever you want with it. In that way, you know what you’re doing and how you’re doing it, and you can feel like you’re getting somewhere with your finances. 

Make Saving Automatic 

Sometimes it can be hard to save because you’re so tempted to buy other things, even if they’re not necessary. So by the time you come to transfer your money into your savings account, you might find you’ve already spent it, and you haven’t got anything left to move across. It’s that situation that’s going to make you feel guilty and regret what you bought, and that’s a cycle that’s tricky to get out of (especially if it’s going to make putting money aside in the future more difficult). 

That’s why it’s a good idea to make your saving automatic so you don’t get into that situation. If you set up an automatic transfer on the day you get paid (or the day after to be on the safe side), you can then forget about that money because it’s as though you never had it, and it’s nice and safe in your savings account. And if you’re ever tempted to spend it, just looking at how much you’ve saved and how close you are to your goals should stop you!

Spend On What Really Matters

This idea can take a bit of getting used to, but what about if you just spend intentionally? In other words, before you buy anything ask yourself if whatever it is is going to add any value to your life (and value doesn’t have to mean financially – it can mean anything that you want it to mean, including – crucially – happiness). If the answer is honestly yes, go ahead and buy what you want to buy. But that’s the thing to remember; you really do have to be honest with yourself, otherwise it’s a pointless exercise. 

So what is it that might add value to your life? One idea is buying experiences rather than things, for example, but whatever it is, if you focus your spending on what truly matters to you and forget the rest, you’ll be in a fantastic position with a great balance between spending and saving.