This is a question that can be quite touchy with some people. Some people don’t want to think about the question because it makes them think about their own habits. Sometimes, those habits aren’t the greatest, so it makes people often feel bad or anxious. So, let me ask you this, are you a saver or a spender?
Let’s elaborate on the question, yes? Do you save your money or do you spend it? My idea is that either a) you save your money in any sense or b) you often spend it. For the purpose of this article, I’ll look at the two ends of the spectrum and discuss the middle ground afterwards.
Time for our usual case study! This time, it’s questions for you rather than a hypothetical set of characters.
You’ve been given $300 to last the week. It seems like a lot, doesn’t it? Depending on your situation in life, it may be more than enough or not. Nonetheless, this is where we’ll begin.
You know what you’ll spend the $300 on for the most part. Food, some entertainment, and maybe some clothes. You need things to get through the week, so these provisions are necessary. Now, here come the decisions.
How much are you spending on food? Do you need to spend as much as you think for the food you’re purchasing? Are you purchasing food on a daily basis, such as going out to eat? Are you buying food at a high-end restaurant or just a simple fast food chain to get through the week?
The questions I just asked are the questions I want you to think about.
How much money are you spending on a certain item? Do you need to spend as much as you think you do? Are you purchasing the item or item category on a daily basis or frequent basis? Are you going high-end or getting by with the simplicities?
The real questions being asked are: how necessary is your purchase, and why are you purchasing it?
Did you get by with the $300? Was it enough for a week? Did you manage to rollover some money for the following week? Did you save or did you spend?
The case study questions were brought up to have you think about your financial habits. I’m not here to tell you how to spend your money, but I am here to ask you if you’re spending it wisely. Could you be saving it for a better investment? Possibly. Could you be spending on that better investment? I can’t absolutely say no. The answers can only come from you. What are you spending on and is it a reasonable purchase and/or investment?
So, let me say this to you: think before you spend. I’m still curbing my spending habits, so I’m not guilt-free from my own spending, however; I am learning. Think before you splurge on what you think you need when really, it’s something you just want. If you want something, think about its importance at the moment. If you can afford it, go for it, but don’t constantly do it and run out of money because you believed you could afford it.
Stay on top of your funds and things should be okay