Money is meant to be spent, but it’s also meant to be saved. It can be hard to balance saving money and spending it. Use the following tips to get a firm grip on how to use your hard-earned money wisely, while still being able to get enjoyment out of life.
How to Balance Saving Money & Spending It
Pay yourself first
You will never save up money, if you don’t pay yourself first. If you put all your money towards paying bills and such it will be hard to build up any savings. Create a special account just for you. Be sure that each week a small portion of your check gets deposited into that savings account.
Give yourself an allowance
As an adult, it’s hard to work so hard and only pay bills. Sometimes you want a little spending money. If you’re all caught up on your bills, it’s okay to give yourself an allowance. You don’t need to spend your whole paycheck, but $20-$30 per paycheck is a fair amount to give yourself. Treating yourself to a new gadget, outfit, or even a restaurant, that you rarely make it to, will be a great refresher that you sometimes need. Life isn’t meant to be all work and no play.
Don’t blow your money
Spend your money wisely, don’t just blow it. This is a good way to balance saving money and spending it. Don’t blow your money. In other words, if you have found yourself swooning over an item, go ahead and treat yourself, on occasion. Before splurging, though, ask yourself, “Is this practical?” If the answer is no, then it is best to wait until you find something that you really want, but also have a use for. Buyer’s remorse is no fun. So, when you walk by a New Kids on the Block poster that has you reminiscing over your childhood, be sure to consider your purchase wisely, before jumping the gun right away.
Stick to the budget
A budget allows you to give yourself spending money and to pay your bills. By sticking to the budget, you’re going to do a good job of balancing and saving money. Start out by reassessing your budget, if you already have one. Make sure that your bills are covered, as well as other necessities, like fuel, groceries, and clothing.
Whatever is left of your paycheck can be divided between gifting and saving. Once your budget is finalized, it is important to adhere to it. If your allotted grocery money for the week has been consumed and you then find out that Reese’s peanut butter pumpkins have just hit the shelves, don’t even think about digging into your wallet. Wait until next week, when your grocery budget has reset. Practicing this self-control can be hard, but very rewarding.
Save your money, watch it grow
The more money you save, the more motivating it is to keep saving. Don’t be afraid to save up for something you want. Instead of running out and buying it, you can save up for it. The result is much sweeter, when you save money for something you want, instead of making a spontaneous purchase.
I’d love to know, how do you personally balance saving money and spending it?