Finding a healthy balance between spending and saving money is important as it will help to give you financial security, but also means you won’t miss out on the things you love.
Most advice around financial management focuses on stopping or reducing spending, but it is still important to enjoy yourself. This is why it is crucial to find ways to save money without completely sacrificing all spending.
Saving Traits
Generally speaking, most people will fall into one of two categories: either a saver or a spender. Savers tend to be cautious regarding what they spend, and are more likely to consider the value of an item, experience, or service before spending money on it.
They will have a low risk tolerance in regards to debt and investments, while focusing on retaining a healthy bank or savings account balance.
While this can help people to avoid losing money or overspending, it can also inhibit their ability to let loose every so often and enjoy the money they have earned.
Spending Traits
Spenders are typically happy to take risks when spending, take on debts, and make investments. While savers will be uncomfortable spending money on possessions or nights out if their funds are dwindling, spenders will be happy to make the most of their available bank balance.
This can make it easier for spenders to get into financial difficulty, but it also means that they are likely to have more fun and won’t miss out on things.
How to Strike a Healthy Balance
Finding ways to spend and save sensibly will give consumers greater long-term stability, but will also let them enjoy themselves, and there are many ways to do this.
Shopping around to reduce essential spending costs on energy, car fuel, cell phones, and groceries can make a massive difference to how much you can put away from a monthly paycheck.
The same can be said for spending on entertainment and non-essentials. For example, people who enjoy playing casino games can search for the best crypto casinos with sign-up and loyalty deals. Many online casinos offer new customers incentives, including deposit matching, and this can help players increase their available bankroll without increasing their spending. Loyalty bonuses can also help people manage their spending without having to completely cut out doing the things they enjoy.
Similarly, searching for other deals by looking online for products and services, and using credit cards with cash-back offers to pay for things and then clearing the debt before interest is accrued, can be an excellent way to earn perks and money while spending.
Budgeting will play a big part in successfully finding the right balance between spending and saving. This will help you set aside the money you need to pay essential bills, and let you know how much is left over at the end of the month. Different spending amounts will work better for different people, but the 50-30-20 rule can work well for a lot of people.
This option sees around 50% going towards essential bills, 30% towards non-essentials like eating out, shopping, and entertainment, and putting 20% into your savings.
Conclusion
Finding a way to enjoy spending the money you earn, but also ensuring you have some security by saving money, can be challenging at first. However, sticking with it should help it become a habit, helping you enjoy your spare time and making it easier to plan for the future.
Lynn Martelli is an editor at Readability. She received her MFA in Creative Writing from Antioch University and has worked as an editor for over 10 years. Lynn has edited a wide variety of books, including fiction, non-fiction, memoirs, and more. In her free time, Lynn enjoys reading, writing, and spending time with her family and friends.
