Living to Save or Saving to Live?
Are you finding the balance between Financial Goals and Enjoying Life?
When it comes to our finances, there are often extremes regarding advice. On one side we might hear: “Save every penny you can!” or, on the flip side, “You only live once — enjoy it!” But real financial well-being comes somewhere in between. It’s about finding that sweet spot where you are building a secure future while still savoring the present.
The Risk of Living to Save
There’s no question that saving is important. An emergency fund, retirement accounts, and an investment portfolio are all crucial to financial stability. But, savings can become a trap if it leads to a life of denial. If you read our previous blog about Dopamine, we discussed the dangers of impulse spending. There are also dangers in denial of spending, as it can create Dopamine cravings.
Imagine a life skipping family vacations, saying no to dinner with friends, or never pursuing hobbies all in the name of future financial security. While this approach will pad the savings account, it could lead to regrets and an eventual temptation to go wild with your money. Time with loved ones and experiences that enrich your life are irreplaceable and provide us with serotonin releases, another neurotransmitter associated with feelings of happiness and contentment. This transmitter release helps to counteract impulse desires but still requires us to engage our money with goals and healthily experience life.
A Red Flag to Watch For:
I realized that I felt guilt every time I spent money on myself, it had taken such a back seat to save that I had to reassess. I found myself more willing to splurge spending. So stepping back, I began to set goals for items I wanted to purchase, and then I would purchase them. With a plan and a goal, I was able to feel accomplished and still able to enjoy life while continuing to meet my savings goals.
Do you find yourself in that position? Where you are so obsessed with savings that you have to fight the indulgence temptation? It may be time to evaluate and set a measured goal for something you would like.
The Danger of Saving to Live
On the other end of the spectrum, the “saving to live” mindset can create financial chaos. If you only save what’s left over after indulging in life’s pleasures, you might find yourself unprepared for the future. The reality is that life is filled with the unexpected. A medical bill, car repair, or job loss can lead to significant stress if you haven’t built a financial foundation. Worse, a lack of long-term planning can affect many other elements of your foundations as you look to pursue immediate goals and fulfillment.
A Red Flag to Watch For:
Do you find yourself using credit cards to cover expenses and have little to no emergency funds? It might be time to evaluate and tighten the reins on discretionary spending and start looking for some avenues to get a stronger foundation.
How to Strike the Right Balance
Achieving financial balance means aligning your spending and saving habits with your values. Here are a few action items that you can set out to implement today:
Set Clear Savings Goals: Determine how much you need in your emergency fund, for retirement, and other big-ticket items. Then, automate your savings to meet these goals consistently.
Budget for Enjoyment: Dedicate a portion of your budget to fun. Guilt-Free! Whether it’s dining out, traveling, or exploring a hobby, allowing space for enjoyment prevents burnout and triggers serotonin releases.
Reevaluate Regularly: Financial priorities will change. Review your budget and goals at least once a year to make sure they still match your lifestyle and aspirations. There is nothing wrong (and in fact, it should be expected) to change as time passes.
Practice Mindful Spending: When making purchases, ask yourself “Will this bring lasting value?” It is not about saying no to everything — it is about choosing what matters most to you!
Simple Exercises to Get Started
For one month, track your spending in two categories: Joyful Experiences and Mindless Purchases. At the end of the month, reflect:
Are there any areas where you spent out of habit or convenience that didn’t really bring any happiness?
Could shifting that spending into savings or towards a more meaningful experience create a better balance?
This small exercise can provide some insights into how your spending aligns with your values. As always, if you are interested in having someone walk with you or bring some guidance in this process, please do not hesitate to reach out!
We are here to help you on this journey!
