It may have been a bit surprising to see the title of this article. How could spending lead to saving more when it should be just the opposite? We usually hear that in order to increase our savings we would have to cut down on our expenses. But as we very well know that too much of anything is not good. And same goes for saving money as well.
The most important thing is to maintain a balance between our spending and our savings. We should not go to either extremes. Let’s assume there is some one who is so focused on saving that as soon as the salary hits the bank account, he immediately invests it elsewhere to prevent it from getting spent. He then spends the remaining month in a miserly manner with whatever amount is left. What do you think would happen to that person after say 6-9 months? He would soon become frustrated as to not being able to enjoy the money that he is earning after putting in so much of hard work. He would see his friends buying cool things and enjoying their lives while he is just putting off everything for the future.
Now don’t get me wrong. I am not saying that we should not save. In fact saving is a must if some one wants to build a fortune in the long run. Without enough savings in place, your future could be jeopardised in turbulent times when financial crisis hits. But all that I am saying is that we need to maintain a balance here as well. If we postpone all our living for the future thinking that we will enjoy our life after retirement, I am not so sure if every one would be in the same physical state as they are now to enjoy their lives later on. As we all know with age, our body starts weakening and slowly we see the onset of various lifestyle diseases. We lose the vitality and energy that we have in our youth. So while we may be sitting on a pile of cash at our old age, our body may not permit us to enjoy it at that time.
Also out of frustration due to too much savings and not being able to enjoy one’s life, often people resort to mindless spending that is even more harmful. To mitigate the frustration, people start impulsively spending money on things that they don’t need. This in its extreme form can lead to financial ruin and bankruptcy.
Hence I would advise people to create a budget and plan their savings and expenditures accordingly. It’s important to also pamper the shopper in us and allocate sufficient funds to that category every month. Having a budget helps to keep us in check and ensures that we don’t tend towards either extreme. With proper planning, you would be able to ensure that the spender in you is taken proper care of while at the same time you are also saving up enough for your future. Don’t deprive yourself. We only have one life. Enjoy it to the fullest while also saving for your future!