Savings is fun when it’s towards a goal. Once you have a goal in mind, putting money aside becomes purposeful and easier. You get the privilege of watching your money grow as desired.
In your quest to saving enough money to invest or to pay off your debt, be careful not to live like a cheapstake. In effect, save enough yet be frugal with your spending. Rich people are shown to be frugal people. Mind you, frugality does not in any sense connote miserly.
Frugality is finding the right balance between saving money and spending enough without depriving yourself unnecessarily. It is not punishing yourself for things you need in order to save. It isn’t saving all of your money to starving.
To live frugally, decide on what’s important to you and what isn’t. Then, spend intentionally on the things which matter to you rather than leaving your spending on auto-pilot. No need to be a spendthrift or a miser, find the right balance.
Frugality means you don’t spend to impress other people but spend on what you deem fit. You find a good bargain to get the things you want and cut off the ones you don’t. Spend money in context, ie, consider your level of income and what you can afford with the percentage of your income allocated to spending.
So the next time you struggle to spend on the essentials for your life or on things you like in the name of saving money, have a conversation with yourself, decide on what matters, spend a fraction of your income on that and still save enough for the future.
Building wealth is a gradual process. Don’t save too much to live like a pauper and don’t spend too much to deprive yourself of a better financial future.
PS. Read I Will Teach You To Be Rich by Ramit Sethi for more tips on frugality and other money topics.
Also published on Medium.