Choosing Between Saving and Spending

Most of us were taught about the importance of saving money, but it gets harder each day, what with the rise in cost of living and a not so forgiving economy.

However, despite all that working against you, the importance of saving cannot be underrated as it is the only way a person can reduce the likelihood of being in huge debts and having an insecure future.

I have found that having the right balance between spending and saving is important as it ensures that you are aware of your personal finances, and you are not spending all or more than you earn. I will be the first one to admit that this is not easy, especially if like me you get excited at the prospect of buying something new, be it a dress or a car, only to realize months later that the only reason you made that purchase is because you had some money in your hands, and not because you really needed that item. But some savers have it easier because they are savers by nature.

So how do you save more and earn less?

It is all about discipline really. Once you have made a conscious decision to start taking your finances seriously, saving then becomes easier. You have to decide on the amount you are going to put aside as savings, say on a monthly basis.

For a start, putting your savings in a fixed rate savings account is the best option as it will mean that the money is a bit out of your reach, which makes it harder for you to make an impulsive purchase, and you also get to save a specific amount every month. Think about which savings accounts are best for you depending on your income and your expectations and choose the option that meets most if not all your requirements.

So what happens after you have saved quite a bit and feel that you should indulge since you have a safety net somewhere?

Well, I have discovered that once I made the decision to start saving, I always strive to ensure that I put some money aside as savings, and try to earn some extra bucks on the side that I then use to spoil myself every now and then.

I have saved up quite an amount, and let’s just say that I feel great, I am not at all in debt, and I am looking for some investment options where I can invest and grow a good portion of my savings. This only means that my future is more secure now than it was a few years back and I am guaranteed that I am going to afford a quality education for my little girl.

Tags: Budget, Debt, Family, Finance, Home, Money management, Personal Finance, Saving

Category: Budget, Family Finances, Saving Money