Finding the Balance between Saving Money and Spending Money

You always hear about the importance of saving and cutting spending.  Some people are savers and some are spenders but there needs to be a balance in the two areas. 

Learning to Save

With the constant barrage of advertising, it is difficult for many people to save.  One thing to learn is the difference between wants and needs.  Everyone has different lives so something that is a want for someone may be a need for someone else.  One way to keep up on your saving is to make it automatic.  Set it up to have a certain amount automatically withdrawn from your checking account or paycheck.  When it is automatic, it is less tempting to skip one or two months.

Learning to Spend

If someone has been drilled over and over for years about the importance of saving it may be difficult for them to spend money.  In some cases, it is alright to spend money.  In some cases, you may save money by spending money.  Older appliances are less energy efficient, so you may save money over time by replacing them with newer more efficient models.

Ways to Save

Now some banks and credit cards have programs you can sign up for that round up purchases you make and apply the difference to your bank account. Also, round up the expenses in your check register, that way you will have a savings cushion of the difference in your balance.   Another way is to save a specific amount of coins or dollar bills.  Some people save all of the $5 bills they get. 

Watching What you Spend

If you follow a budget it is usually recommended to have a category with some money to spend on something you want so you don’t feel to restricted with your budget.  As with dieting, if you make you budget too restrictive you may get frustrated and quit.

If you have trouble knowing where your money has been going, start tracking your expenses.  Either write down everything on which you spend money or keep your receipts and write them down in the evening.  At the end of the week, take a look at where your money went and if there are areas you can cut back on or cut out totally.  Try doing this for a month.  After tracking your spending for a month, it should become a habit to think how you are spending your money.

The key is finding the balance between saving and spending money.