It is pretty difficult to not spend any money at all to survive in the world we are in right now. And it is important for us to strike a balance between spending and saving money because most of us does not have unlimited amount of money (who does?).
There is always one more bill that waiting for you to clear every month and you never seem to get ahead of them, instead you seems to getting more and more far behind them. You start to feel frustrate about current situation and lose hope in the future, and you cannot imagine you retirement life (if there is any).
Sometimes, it is very difficult to strike a balance between spend and save money because they always seems conflict with each other. Do a little exercise below and see if helps:
1. Take out 2 pieces of paper, one titled Spend, one titled Save.
2. On the Spend paper, write down the first answer come to mind when you ask yourself “why did I spend money?”.
3. Then continue to question the answer pop up until you run out of answer. E.g. if the answer to “why did I spend money?” is to entertain myself, ask yourself “why I need to entertain myself?”
4. Do the step 2 and 3 for the Save paper.
5. Most of the time, the final answer should be quite close meaning to each other (healthy vs lively or happy vs enjoy).
6. While looking at this 2 papers side by side, checking that feeling written on it, observe how your feeling changed when you are reading them.
7. Tell yourself that spending and saving are both aiming for the same end result, after this session both of them will combine together so well, working together so well to help you achieve better financial habit, help you gain more focus on achieve your purpose and erase those internal conflict in you when you are making a purchase decision.
This little technique has helped me to increase my saving rate and clear my debt. And I hope it can help you achieve better (or suitable) balance with your spending and saving too. Let me know if it helps.
Thanks for reading