Have you ever wondered why it is important to save money? We all hear that we should save more and spend less, but… why?
Besides the obvious point of spending less so you can save more, spending less can actually have a profound effect on your self-respect and allow you to invest a lot more money in the most important stock of all: yourself.
Spend less to feel better about yourself
Emotions play a huge role in finances. Many wish to earn money to buy (what appears to be) love, respect, and admiration. That can wreak havoc on a middle class income. Whether or not that works out for them is beside the point, the point is that those desires are backed by emotions.
Spending money can make people feel great… for a small period of time. Ever heard of buyer’s remorse? What happens when someone buys something, expecting that it will make them feel fantastic, and then it doesn’t? Those emotions are wrapped up in the spending of money. And if purchasing an item can have such a great influence on emotions that people can literally become spending-addicts, saving money has a large emotional pull, too.
If you are someone who saves a healthy amount of your money because you have done your homework, and you know that saving is a great idea for you and your future, then you’re probably going to feel pretty great about yourself.You learned something, and you trained yourself to engage in the types of behaviors that will help you in the long run.
On the other hand, if you live paycheck to paycheck, hoping for the best and expecting the worst, then you aren’t going to feel very good about yourself. You would know that something is wrong, but not do anything about it, and that doesn’t make people feel very good about themselves.
Invest in yourself with your money
What I mean by invest is that you should purchase items or trainings with your money that will allow you to make more money in the future — if you buy a thing, that thing should be able to make you money or improve your life in the long-term future. For example, a guitar can be an investment if you plan to use the guitar to record music that you will sell, or if you will use it to perform at concerts that will earn you money.
When you get a dollar, you can either buy something fleeting with it, something that you will purchase and enjoy for a few moments, and then it’s gone forever, or you can choose to put it toward something that will last, something that will allow you to achieve greater financial success, personal satisfaction, or help in the future (like a trip!).
So the next time you consider spending or saving, consider whether or not the benefits of expenditure would outweigh the long term benefits of saving: after all, you’re what’s on the line!
Have you ever been surprised by the benefits of a spend-less spree?