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.