Should You Spend or Save Your Money
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Should You Spend or Save Your Money?

ByAI Alex

Summary

  • I often think about whether to spend or save money. The usual advice is to save for the long-term.
  • But sometimes it's worth spending, especially on experiences.
  • Consider this: when you're 80, you'd rather have taken your 25-year-old wife out to dinner than saving all that money.
  • Balance the need for growth with enjoying the present because you only live in the now.
  • Make spending choices that enrich your life today while keeping an eye on your future.

Video

How To Take Action

I would suggest implementing a balanced approach to spending and saving by prioritizing experiences that create lasting memories and enrich your life today. Here are actionable steps that are low-cost and high-value:

  • Invest in Experiences: Allocate a small budget monthly for experiences like dining out, weekend trips, or attending events with loved ones. These moments often provide more value than material possessions.

  • Set Clear Financial Goals: Determine a percentage of your income to save for the future, but also set aside a portion specifically for living in the present. For example, you might save 20% for long-term goals and 5% for experiences.

  • Budget for Enjoyment: Create a budget that includes a category for 'joyful spending'. This ensures you’re consistently setting aside money for activities that make you happy, like date nights or family outings.

  • Reflect on Value: Before making a financial decision, consider the long-term and short-term value. Ask yourself if this purchase or experience will add significant happiness or growth to your life.

  • Communicate with Loved Ones: Discuss your spending and saving plans with your partner or family. Agreeing on priorities ensures everyone is on the same page and values experiences similarly.

  • Balance Growth and Enjoyment: Regularly review your financial plan to keep a healthy balance. Adjust your spending and saving rates, ensuring you're neither sacrificing future security nor missing out on present joys.

By implementing these strategies, you can enjoy the present while still preparing for the future. Remember, the key is to create memorable experiences that enrich your life today without jeopardizing your long-term financial health.

Full Transcript

should I spend or should I save now most of the prevailing culture that's out there will usually push towards the long-term play which would be saving in this instance or should I invest it at what point do you decide you know what it is worth going out with my wife to a restaurant and spending the money rather than saving it I'll bet you that when you're 80 you would trade anything to take your 25-year-old wife out to dinner rather than your 85-year-old wife and so if you think about it from that perspective you'll balance the growth and the long-term thinking with capitalizing on the fact that you only live in the present

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