Wednesday 10 January 2018

Spend or Save? How & Why You Should Do Either


Have you thought about how you handle money the way you do? I am a ‘saver’ and feel immense pleasure in knowing the amount saved and feel discomfort when spending. On the other hand, you may be an impulsive shopaholic and pay little attention to the future needs. Saving and spending are two sides of the same coin. This is a tricky dilemma for many, as our fathers and forefathers tell us to save for the rainy day.
However, it is okay to spend a little and enjoy the short life we have. Most people are nervous about spending money and outliving their money. According to Warren Buffet, “Spend what is left after saving”.

Here are 3 reasons why you should ‘Save’.

Financial Independence

For many people “being rich or wealthy” means having financial independence. It means a heart and mind free from all ‘What-ifs’ of life and savings to depend on. Financial freedom means having the liberty to make life’s choices and remaining wealthy. This is possible with the knowledge about money.
For some, it could mean the ability to go on a vacation whenever you want or have the option to leave work and go back to school or start your own business. For me, financial independence means having the potential and capability to invest in someone else’s business. To someone else, it may mean taking up a less financially beneficial but a satisfying job. It would mean retiring with a less stressful, secure life with enough reserves for the future.
Financial independence does not depend on a paycheque. It makes you feel rich beyond imagination. Moreover, it gives you the ability to live a lifestyle you desire. You would not need to rely on anyone for money or work for it.

Unforeseen Expenses & Emergencies

The savings often come handy at the time of emergencies or unforeseen expenses like car repairs, home, and appliance repairs or illness. A recent study by Bankrate suggests, 41% people turn to savings in case of sudden costs. They do not rely on banks to lend them money for such expenses. It is often better to anticipate and prepare for such situations. As many as 28% of the silent generation take care of surprise expenses and use credit cards to pay for it.
Emergencies happen and are usually untimely. For example, A member of the family may fall ill, you may need to travel, harsh weather conditions may cause damage to property or a funeral. These emergencies are big-ticket, and so it is better to equip ourselves, be self-sufficient and self-reliant if possible rather than become a target.

To Have a Good Life
Living from day-to-day or paycheque to paycheque is stressful - emotionally, psychologically and physically. When people don’t save, it is imminent, they often run from “crisis” to “crisis.”
Happiness comes from organizing and planning. However, it does not mean that just organizing everything will make us happy, nevertheless, it helps. When the future is uncertain, putting aside savings, taking charge of future and any financial apprehensions are organizing. Saving will make you better off in the future.

Here are three reasons you must ‘Spend’.

Make More Money

Spending money is imperative and when you spend intelligently you can earn more money. More earnings help in saving more. It is a cycle. You do not need to spend all your earnings, that will be foolish. We save to spend and enjoy life so the main idea is to save and spend wisely. Spending money on important things is imperative, like buying a house.

Live Life’s Experiences

We earn money to spend, but it depends on what you would choose to spend on. Many people spend money on gaining life’s experiences. This could be by traveling, cruising or adventure sports and creating wonderful memories, like photographs and souvenirs.

Living life ‘Today’

Most important of all the reasons to spend is the reason to live life ‘today’. You will save for tomorrow, how about spending money for today? Living life 'today' is important. Life is knotty when lessening debt - ‘cut expenses, spend small, save more’. However, that does not mean you will not spend money to live a penny-pinching life. This necessitates spending on today and preparing for tomorrow.
When you take steps to spend wisely, you will make more money to save more. If you begin today by keeping aside some money from each pay cheque in a savings account, you will have reserve funds up to $1,000 and more with time. Put aside bonuses and refunds as savings and as life transpires, funds may dip. You need to build it up with some work.
Spend and/or save enthusiastically and welcomingly, else you will miss out on the great benefits of saving and spending wisely.

Recommendations

Disclaimer: This post may contain affiliate links. If you click on one and complete a purchase, I will earn a commission. (Thank you for that!). However, this monetary relationship does not in anyway sway my recommendations, it’s something you should be aware of on this site and others online. As always, you should do your own due diligence before making any purchase decision.

Here are a few banks you can buy and save for almost every occasion. 
 You can get this black Prinz Rainy Day Bank with an exclusive design and slot for money on the top.

 I am sure you would love this Engraved Honeymoon Fund Shadow Box made of Blackwood when you are saving for your honeymoon. You can even personalize it with your names.


If that is not your style, here is Young's Adventure Fund Suitcase Buckle Wooden Travel Savings Bank. I am sure you love this one, especially if you are saving for an adventure trip.

Here is one I recommend if you are saving for education, Prinz 'Tuition Donations Accepted' Wood bank.

This mini lock box is great! If you are looking for a small compartment to stash money from your yard sale and save it for later.

Make saving for your next big purchase fun with Cypress Home Family Vacation Wooden Shadow Box Bank.

Teach your children to great money habits with this  Save Spend Share Piggy Bank for Kids.

References
http://cashmoneylife.com/spending-money-is-good/

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