Is it possible to save money and enjoy life or do those contradict each other? There is a long-standing debate between how you can save money and enjoy life at the same time.
For years, I have heard statements and arguments about this debate. I have listened to people say some of the following statements:
- You have to save, save and save for your future and
- You work too hard not to enjoy your life
These proclamations infer that you can only save for your future or that you should enjoy your life regardless of money. I disagree with both of these comments and assumptions. I believe there is a proper place for both.
First, I purposely put save money before enjoy life. I believe that saving money, following the Net Worth Millionaire Plan and having good personal financial management is critical to long-term life enjoyment. Now let’s dive into these two areas.
SAVING MONEY
To be honest with you, I am and always have been a saver. I take enjoyment in seeing my net worth increase and hitting a savings goal. Next to living within or below your means, saving for your future is the most important personal financial priority. You need to save money for some of the following:
- Emergency Fund
- Retirement
- Kid’s College
- House-mortgage/upkeep
- Health Care
- Buying a Car
- Vacations
I cannot stress enough the importance of saving for the list above. Preparing for the future will provide you with financial security and the parameters on how much you can spend on certain items. When you have a proper emergency fund and are investing into your retirement, you are taking the appropriate steps to take care of yourself. When you save money for your kid’s college education, purchasing a home and car or to take a vacation, you are setting guidelines to how much you can spend. For example, if you saved $2500 this year to take a vacation, then you will work within that amount to determine where to go.
When it comes to saving money, determine and budget the amount you want to save and then make it automatic. Also, you may want to have different named accounts so that you can clearly see how much you have saved. For example, I personally have an emergency fund account that is separate from my car fund account.
Can you save too much? Maybe!
You have to find the balance between good money management and enjoying life.
ENJOYING LIFE
There are endless ways to enjoy life. From traveling the world to accomplishing a goal to spending time with your family. I think it is important to find the things that bring energy and happiness to your life. Some people will say “that life is too short not to enjoy it.” Although I generally agree with that statement, I am not fully onboard. My question is “to what extent and to what cost do I enjoy life.”
On the extreme side, should I not work so that I can sit at home and watch my favorite TV shows or buy the biggest house, fanciest cars and the nicest clothes with a credit card and rack up huge amounts of debt. I do not recommend that!
I personally like to spend time with my family and friends, coach my college swim team, workout, write this blog, relax/sleep, watch TV and go on vacation. Also, I enjoy hanging out with the people and the town where I live. Some of the things that I enjoy are free, a few take up time and others cost money.
My wife and I plan, budget and save for all events that cost money. An event, like a big family vacation, may take months and months of saving, while other less costly events would be included in our monthly budget. We do not, under any circumstances, go into debt to pay for things that we enjoy. We follow the Net Worth Millionaire Plan and are debt free except our home, which we are actively paying off early. Having a financial plan and no consumer debt, provides us the financial security and freedom to do and spend more on the things that we love.
As I mentioned earlier, there are many ways to enjoy life that does not cost a lot of money. Read MoneyNing’s 13 Ways To Enjoy Your Life Without Spending A Lot Of Money.
BALANCING THE TWO
Try and find the balance between how to save money and enjoy life. I recommend that you use our Simple Monthly Budget and save for life’s expenses, as well as all the things that bring you enjoyment. I truly believe that if you save money and handle your personal finances correctly then you will be able spend more time and money on the things that you enjoy the most.
SAVE MONEY AND ENJOY LIFE – ACTION STEPS
- Determine the amount of money you want to save.
- Save money automatically.
- Decide what you enjoy.
- Start to save for it if it costs money.
- Enjoy your life.
Overall, with a little planning, you can save money and enjoy life. I find more enjoyment in doing the things I like when I can afford it.
