Save Or Spend?
If you’ve managed to build decent savings, the chances are that you’re feeling good about yourself. So you should. In the current age, it isn’t an easy task. Most of us are struggling, and you’ve likely had to forgo a lot to develop that safety net.
If you’re happy with the amount you have, you may be considering taking your foot off the pedal. It’s still worth putting something into the account, but you don’t have to stretch your expenses anymore.
But, many a saver’s resolves starts to wobble at this stage. Often, this wobble comes from outside sources. At some point, we’ve all been asked: “What’s the point in saving if you aren’t going to spend it?” Sometimes, we say the same thing to ourselves. Why did you put all that work in, only to let your money sit there doing nothing?
Or, perhaps you’re the other way around. Even when emergency strikes, you’re reluctant to dip into the fund. Seeing that amount deplete would be too heartbreaking.
In these instances, finding balance is never easy. But, it is possible. Remind yourself that you saved for emergencies. To justify any expenses, consider whether you’re dipping in for the right reasons. To help you decide, we’re going to look at two of the main reasons people dip into their savings, and how to tell whether the cause is a just one.
Running a house isn’t cheap. If something goes wrong, it can cost big bucks. If your boiler breaks, for example, you could be looking in the thousands. And, in case you’re wondering, that’s a justified reason to spend. Equally, urgent repairs, such as broken windows, or damp, are worth splashing out on. This is, most definitely, the type of thing you’ve been saving for.
By comparison, a desire to redecorate, or buy new accessories, isn’t such a worthwhile cause. A good way to think about this is whether your lifestyle would suffer without your savings. If the answer is no, don’t even consider that money. Instead, set aside a separate amount for the cause.
Car costs can be painful. But, in an age where many of us rely on vehicles to get to work, this isn’t something we can bypass. If you aren’t careful, you can spend a lot on your car. But, it isn’t always necessary.
There are, of course, reasonable vehicle-related expenses. If you’re in an accident, for example, you’ll need to pay out for repairs as soon as possible. You can even justify this expense by contacting injury lawyers like Todd Petereson, who stand to earn back what you lose. Thus, your savings don’t even have to suffer from this expense.
But, if you find yourself considering an expensive car, it might be worth thinking again. You’re in a good position that you don’t have to settle for the most basic model out there. But, it also isn’t worth splashing out on the latest design. Use your logic, and consider how you can compromise.