Enjoy Life And Save Money: Finding A Balance That Works For You

Trying to figure out how to budget your finances is one of the more challenging things you’ll have to deal with as an adult. This can feel daunting because it means you have to think about your lifestyle and your future.

On top of worrying about saving enough, you also want to live your life (which usually involves spending), and this makes you feel like you’re constantly deciding if you should save or spend. That’s why setting financial goals and priorities sooner rather than later is a great way to help you find the perfect balance between saving money and enjoying life.

Enjoy Life Or Save Money? Do You Have To Choose?

While it’s important to start saving money, it’s also important to take the time to enjoy it. You did work hard for it, after all. Finding this balance is something people have always struggled with, and why it’s important to realize that there are ways to manage your finances so that you don’t have to choose. Since life likes to throw curveballs and it’s impossible to know what tomorrow holds, you may need to prioritize one over the other at certain points in your lifetime. But, there are proactive ways to budget and plan so that you can achieve a kind of balance between spending and saving.

Both options have their benefits and points to take into consideration so it’s important to evaluate your lifestyle and preferences as part of your financial planning. Let’s get into the details to help you better understand your next steps.

Spending Money On Experiences: Benefits And Considerations 

A huge part of life is spending time doing things that bring you joy and bring you closer to the people you care about. These activities can vastly influence your quality of life.

Here are some other things to consider when spending money on experiences.

Benefits

• You’ll build memories: What’s going to be truly lasting and valuable in your life, other than a savings account, are the memories you make. You’ll want to be able to look back and remember your monthly brunch with your friends or taking that special anniversary vacation with your partner.
• You’ll gain life experience: You won’t ever figure out that you enjoy scuba diving unless you sign up for the lessons or know that you should have avoided parking downtown for a concert unless you buy the tickets first. Spending money on these experiences gives you more opportunities to learn and grow into a more rounded person. 
• You could feel more satisfaction: Sometimes we need a little distraction from our everyday lives. If you feel like you’re in a rut and deserve something fun, these activities can be something to look forward to.

Considerations

• You may be reducing financial security: With each activity you spend money on, potentially the less financial security you’ll have. This might mean more to you if you have less in savings or you’re trying to save up for something, so keep that in mind when planning out your month.
• You may experience more financial stress: Along with experiencing less financial security, you might also have some stress about this. The two go hand in hand, so make sure if you tend to stress out about finances, that you’re considering this before agreeing to a weekend trip.
• You may be less prepared for retirement: It’s hard to know where you’re going to be financially when you retire, so putting away little by little to help you cover those unknown expenses is a nice security to have. Spending excessively instead of saving might make you less prepared for that moment.

Saving For Key Milestones: Benefits And Considerations  

Many big milestones that you will inevitably experience are also going to cost money. Setting up a savings account, along with an emergency account, is a great way to plan for these situations before they’ve even happened.

If you’re more inclined to save for life’s big moments like your first house, wedding or baby, here are some benefits and points to consider.

Benefits

• You may experience more financial security: Slowly but surely, putting that extra $100 into your savings that you would normally spend going out to dinner is going to add up, and help you reach a comfortable level of financial security.
• You may experience less financial stress: Like before, financial security and stress go hand in hand. By prioritizing saving instead of spending, you’re helping reduce the stress you might experience about your goals and habits.
• You may be better prepared for retirement: Being frugal is hard, especially when you’re saving up for a big life event that doesn’t seem as relevant as your present life. But by keeping in mind that you’re saving up to secure a better retirement for yourself or your family might be the best motivator for you to keep saving.

Considerations

• You could miss out on some experiences: Cutting spending saves money and contributes to your long-term goals, but by doing this means you may also have to turn down life-enriching experiences that don’t fit into your budget.
• You could feel dissatisfaction with your lifestyle: Taking the route of saving and turning down experiences, could lead you to feel dissatisfaction with your lifestyle. It’s responsible to save your money but to constantly do this without rewarding yourself can be exhausting.

How To Save Money While Enjoying Life

Now that we know the pros and cons of saving money or enjoying life, let’s figure out how to find the balance between them.

1. Evaluate Your Goals

You won’t be able to set a proper personal budget until you know what you’re saving for. Setting financial goals is a great way to gauge how to budget in certain aspects of your life. These will typically fall under two categories:

Lifestyle Goals

This is the time to look at your past social calendar and figure out where you’re typically spending your money.

This will include vacations, restaurants and any activities that you’ve opened your wallet for. That way when planning out your budget for the future, you know how much you should put away to achieve this part of your life.

Savings Goals

Savings goals will range depending on your situation. That said, there are common goals that you can make to help achieve a more financially secure future, like establishing an emergency fund, saving for retirement or saving for a down payment.

Setting these goals are important because they get you to start thinking about how you’re going to achieve long term financial security. For example, your emergency fund is going to help you cover unexpected medical bills if you’re in a pinch, so you don’t have to worry about money along with the situation.

2. Create A Budget

Now that you know what your financial goals are and what you want to save for, you can create a budget. When setting up a budget, you’ll want to consider the importance of each goal you set to find that right balance between saving and spending.

3. Explore Experiences That Fit Your Budget

One way to stay within your budget is to research activities that only fit into the budget you’ve created. It’s a great way to regulate how much you’re spending, and while it doesn’t allow you to go to every experience, you still have a way to find something to enjoy. To start, try a quick internet search to show you budget friendly experiences around you.

You can also find communities online, sign up for Facebook and join groups that recommend cheaper group activities if you’re looking for some companionship.

4. Reassess And Adjust

There is one thing you can count on during your life, and that is change. This means a budget and financial goals you made 5 years ago might not be relevant to your life now. Take the time to reassess your needs as time passes and make adjustments so that your budget continues to help you live the life you want.

The Bottom Line

No matter your income or where you are financially, figuring out how to budget your finances is a great way to help you live the life you want without causing undue financial stress. Take the steps to figure your goals, a budget, and how you want to balance between saving and spending.

There are ways to both enjoy your life and save money; it’s just about making sure that your plan helps you achieve the lifestyle that is perfect for you. If you’re looking for help managing your finances, sign up for Rocket Money^SM today.