When you have a little bit of extra cash, it’s easy to want to spend it instead of saving it. Spending gives you instant gratification for purchasing something you’ve always wanted or for experiencing something new.
That instant gratification is what marketing companies are hoping you will continue to seek, and it can create a financial problem for people who are big on shopping and spending. While spending money isn’t always bad, it’s important to be mindful of your purchases and make saving a priority.
The reason is simple. Saving money allows you to have options in life. Below, I explore these options, showing you why you should consider saving some money instead of spending it.
5 Reasons To Save Instead Of Spend
#1. Save For Something Bigger
Think of all the money you spend on fast food or coffee each year. You will likely come up with a number that is in the hundreds or possibly thousands of dollars. It may seem insignificant to spend a few bucks here and there, but it adds up to quite a bit.
Saving this money could easily pay for a mini vacation or pay off a credit card. Small and frivolous purchases are often the most taxing on your wallet, and they are rarely even noticed.
Make it a priority to think about saving for something bigger. Set a savings goal and stop buying those to-go items that suck your wallet dry and spend the money on things that will actually have a positive impact on your life, like taking a vacation.
In the event you find that you still make these small purchases, and we all do, consider saving something each time you do spend. You can easily do this with Qapital.
It’s a free app that rounds up your purchases. The rounded up amount goes into a savings account for you to spend later. So far, I’ve saved close to $1,000 just by rounding up my purchases. You can learn more here.
#2. You Won’t Need Debt Management
If you have a chronic spending problem, you should consider taking some personal finance courses. They will teach you how to spend wisely, how to save, and how to use your money effectively. Once you master these skills, you will be able to save easily without spending unnecessarily.
The worst thing you can do for yourself is to get involved with a shady debt management company to help you out of debt. Most of these companies take advantage of consumers and once you pay off your debt, you find yourself right back in debt because you didn’t learn anything.
Take the time to learn the basics of personal finance, and you will save yourself a lot of time and headaches.
#3. Have A Fallback Plan
Creating a rainy day fund is always a wise choice. It’s important to save at least $1,000 as a fallback. Don’t worry if reaching that point is a challenge because I assure you it does get easier.