Enjoy your money now or save for the future?
We all know how important it is to save money for your future. Maybe you’re saving up to buy a home, setting yourself up for retirement or putting money aside for a holiday. Savings goals are essential, but if all your money is tied up in paying bills and saving money, life can get a little boring.
You’ve worked hard for your money, and it’s important to enjoy life now. And if you’re too tight with the purse strings, you’re more likely to have a big splurge and blow some of your savings. Balance is the key, but how do you make sure you’re looking after your future while still enjoying the present?
Try these tips to make sure you’re preparing for tomorrow without giving up everything you love today:
1. Look at your current spending
The first step is to know exactly where your money is going. Look at your necessary expenses like mortgage payments, bills and groceries, but also all those little payments you’re making. Are you buying lunch at work each day? Picking up takeaway for dinner? Gym memberships, beauty treatments and those sneaky visits to the shops during your lunch break – they all add up, so take a good (and honest!) look at your spending habits.
2. Decide what matters
Your money will only stretch so far, so decide what’s really important. Do you need to buy coffee every day or would you prefer your money to go toward an overseas holiday? You might decide that you really enjoy your morning coffee and don’t want to give it up. That’s fine, as long as you’ve consciously made that decision.
3. Find a cheaper option
If being able to spend money on things you enjoy is important to you, try finding a less expensive option. You’ll still get to enjoy yourself, but you won’t blow your savings. Have dinner at a less expensive restaurant. Shop at a chain store rather than a boutique. Cutting back rather than giving up your treat altogether can make a big difference.
4. Plan for your spending
If saving money is cramping your style, set some money aside for guilt-free spending. Just like you set up a separate bank account for a savings goal, you can also set one up for spending. How much you put in your account is up to you, but if you know you have a bit of money to play with, you can go out to lunch without feeling bad about it. But when your spending money is gone, that’s it – you’ll have to wait until next pay day to get those new shoes you had your eye on!
5. Make the most of any extra money
Now and then a bit of extra money comes our way. Maybe you’re getting a pay rise, expecting a tax return or perhaps you’ve sold a few things on Gumtree. Think hard about what you’ll do with this money. Is it going straight into your savings, or will you blow the lot on a spontaneous purchase? Maybe you could put most of it aside for the future, but use some of it for a special purchase. Remember, it’s all about balance.
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Source: Clientcomm library
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