Should I Spend Money While I Can?

Often it can be tempting to think that we should spend money while we have it. We may think that if we do not spend it when it is there, that it will disappear and we will not have it anymore. It is worth thinking hard about this attitude though and whether it is a wise one to have.

Spending

There are things that we have to spend money on and cannot go without. For example, we need to eat and drink and we also need somewhere to live. We will also have contracts, loans and direct debits that we have agreed to pay and will have to pay. All of these things are considered to be necessities, either because they are necessary for us to have to live or because we have committed to paying for them. However, a lot of the things that we buy are luxuries that we do not actually need but we still want. This includes things like holidays, alcohol, eating out, jewellery and films. These are things that we can go without and may need to go without if we want to be able to save money.

Saving

Having savings is something that a lot of people like to have. It means that they have some money behind them which means if there is an emergency and they need money all of a sudden, then they have money there to use. If you manage to build up a lot of savings you can use them if you lose your job and need some money to live on until you find another one. It can therefore give peace of mind as people know that there is the money there to use. Savings can also be used to regularly put money in so that you can afford to buy more expensive items. This can include things like holidays or cars.

Borrowing

It is also possible to borrow money if you need it. Therefore, if you have spent all of your money and therefore have no savings, you can use a loan to pay for emergencies or expensive items that you cannot afford. However, it is worth remembering that you will have to pay for this loan, often in the form of interest but also perhaps in charges as well. You may also not be guaranteed a loan, as this will depend on your credit rating. If you have just lost your job, then you may not be able to get a loan because you have no income and it will be hard for you to repay it, if you have to start making repayments before you get a job.

So, spending money has advantages and disadvantages. Whether you choose to spend it while you have it will depend on your priorities. It is wise to plan though and make sure that you have enough money to pay for everything that you need. It is also worth thinking about the advantages of saving and how that can help to reduce future costs by meaning that you will have less need to borrow money and therefore not have to pay loan costs.

Also saying you need to spend it while you have it makes little sense. If you do spend it you will no longer have it and if you save it you will still have it. If there are bills that need to be paid, you should be using the money to pay for these rather than just spending it on random things. So it is much better to be well organised with your spending and make sure that you are buying everything you need before you decide what you are going to do with anything that is left.

Should I Save for the Future or Enjoy my Money Now?

It can be difficult at times to decide whether it is a good idea to save money for the future or just spend it and enjoy it right now. This is something that many of us will wonder about from time to time. It is fun spending money if we are buying treats for ourselves although paying tax and bills is not so much fun, but something that we cannot avoid. However, having money saved to fall back on, to spend in emergencies or money saved up to buy expensive things can give peace of mind. It is good to think about the pros and cons of both.

Advantages of saving

There are many good reasons why saving could be a good thing. Having money saved up will mean that you can have some to fall back on. If you have a bill that you cannot afford or you have something break that you need to replace then having some money available to pay for it can be really useful. You will be able to use the money that you have saved rather than borrowing more money which will be cheaper. It can also give you peace of mind knowing that you have that money there in case. It can be nice to also know that you have some money there in case you lose your job as this will enable you to still be able to afford a few things even if you have no income. If you build up a significant amount it can help to manage during a few months while you are looking for work.

Saving can also be useful if you want to pay for something expensive. This can mean anything from a deposit on a mortgage or car to a holiday. Something that you would not normally be able to afford on a monthly basis. To save up for item means that you will not need to borrow money for it or that you will be able to have it when otherwise you will not.

Advantages of spending

Spending money can mean that you will be able to have more things or more expensive things. It might mean that you can buy better quality items and therefore get better value for money because they will last longer, work better or taste better. It may also mean that you will be able to have more things and if you feel that you are going without for some reason, then you will feel more fulfilled and it might that you are going without basic things and so spending can allow you to have these things. Spending can also benefit the economy. The more spending that takes place, the better business can thrive and this means that there will be more employment and/or wages will go up and people will spend more and there will be a cycle of growth. If we hold on to our money and put it in the bank, although it might mean that banks can lend a bit more money it does not contribute to the economy in such a direct way.

It is not an easy decision to make but often we will not even stop and think about it. Therefore, just by thinking about whether it is better for you to spend or save, you will be able to decide what might be advantageous to you. Consider whether you would manage if you need to pay for something in an emergency, whether there is anything that you want to save up for or whether you will feel that you will get peace of mind from having savings behind you. Then you should be able to make the right decision for you.