Balancing Saving While Still Enjoying Life

Balancing Saving While Still Enjoying Life

There’s a fine line between saving too much for the future and not enjoying the now; and spending all your money now and having nothing for later.

We need to think about both and ensure we balance them well. It is possible to do this! Many of us think it’s one or the other, but we can have it all.

A lot of this comes down to our mindset. First, we need to work out what our current thoughts are about saving and spending, then understand where these beliefs come from.

Some of us were taught that we need to save everything we have because money is hard to come by and once we have it, we can't let it go.

Others spend every penny they earn (and more), either because they believe they can’t save and have a better future, or simply haven’t been shown how to change their habits and see that they can have both.

Align Your Spending With Your Values

We also need to identify our values - these are the things we should prioritise when it comes to spending. Is one of your top values adventure or travel? Health? Community? Time? Growth? Creativity? Something else? Now ask yourself - how do you spend your money? Are you spending in line with these values?

For example, if one of your top three values is health, but you’re not spending any money to get healthier - whether by paying for the gym, a fitness class, or healthier food - there’s a disconnect.

You might currently be spending a lot on nights out, drinking, or constantly eating takeaway. After recognising this, the goal is to see how you can shift your spending from things that don’t align with your values to things that do.

Perhaps you don’t like to cook, but you could order easy meal boxes or chef-prepared meals that are far healthier than takeaway and are often cheaper!

You might also decide to cut back on nights out or have more sober nights.

When you start doing this, you’ll quickly see how much it’s costing you in both health and wealth!

Start Saving and Investing Early

The earlier we start saving and investing, the better it is for our financial future. But we need to balance that with living our lives now. By refocusing where we spend, we can quickly change the direction of our future.

Thanks to the power of compound interest, investing £500 a month for the next 30 years could make you a millionaire! And you’ll have only put in £180,000 yourself, with the other £950,000 coming from compound interest and dividends. This is based on the last 200 years of the S&P 500, which has grown by just over 10% annually on average.

Imagine yourself in 30 years, thanking your present self for setting things up so you can retire comfortably and still live your life.

Need Help?

If you can’t work out where you’re wasting money or aren’t sure where you can save extra, I’m here to help. With a Money Insight Session, we’ll dive into your spending habits and come up with strategies to change them, allowing you to align your spending with your values and save for your future. Future you will love you for this!