is it better to spend your money when you earn it or save it for some time in the future?

Question

guys please help me on this.. this is a survey!tnx

Answer 1

You should definitely save money - unless of course, you know for a fact that you're going to die very soon, in which case spending may be a viable option. (But even then, you might want to consider saving it and passing it on to your loved ones.)

Chances are, if you're young you won't die tomorrow, and you'll live for quite some time. So don't spend your money as if there's no tomorrow - because there probably will be. Financial splurging might be fun while you're blowing your money off - but financial hangovers can give you headaches that can last YEARS.

The best thing about having money is NOT that you can buy anything that you want (consumption), but that your time becomes your own, and not your boss's (financial freedom). After about 10 years of working and hard-core saving, making only an average 18K/year, I've saved up over 75K. So I only need to work part-time now, I'm free to pursue my own interests (that don't require a lot of money of course), and I never worry about losing my job or starving. I have more time + less stress + better health + more peace of mind. I don't have to worry about rainy days - only rainy years and decades. But I can only do this if I don't touch my savings.

So I disagree with the guy who said that NOT spending and enjoying your money is foolish. Many people think enjoying money means spending it. But I gain a whole lot of benefits from my money even when it's just sitting in the bank/stock market. Actually, spending that money would significantly decrease the quality of my life. I'd have to go back to the 9 to 5 life, and I definitely don't want to do that. That kind of lifestyle is hazardous to your physical + mental health... unless you're fortunate enough to have a job you love.

I also disagree with the guy who mentioned inflation. Even if you're saving at less the rate of inflation, it still doesn't make sense to buy unless it's an absolutely necessary purchase - of which few are. Whether or not a purchase should be made does NOT depend on the current market price of the item or the rate of inflation, but on its own personal true value to YOU. And in my opinion, most items in the market place have little or no TRUE value to ANYONE. Just because something is expensive doesn't mean it's actually life-important. Most of it is just glamorized junk that people don't really need, and that you're going to stop using, throw away, or replace after 1 or 2 years. Be careful you don't get stuck in the spiral of consumer spending - it's probably not going to make you happier in the long-term, because the stuff you're spending your money and time on actually has no real true value.

Answer 2

If you have bills that you must pay, or living expenses you must meet such as groceries, rent, etc., you won't have much choice. The wisest thing is to budget living expenses and build a saving plan into the budget.

I say, spend only what you really need to spend, save about 10% for the future, and about 5% should go into a rainy day fund until you have about 4 months of living expenses covered in that, then you can spend a little for "toys," but don't overspend and blow your budget.

Have no idea how that will fit into your survey, but there you have it anyhow. ;)

Answer 3

This is not actually a simple answer.

If you save money at a rate less than inflation then you are losing money.
If you spend it on things that depreciate then you are losing money.

And worst of all holding on to cash for a period to buy and item that is going depreciate. for example you want to buy a 1000 widget and have 1000 cash. You hold on to the cash for 1 year, with inflation now you still have 1000 but the widget is 1030, so you scrape up an extra 30, buy the widget and as soon as you leave the store its worth 675. You lost 30 to inflation and 325 to depreciation for a total loss of 355. If it would have been purchased right away you would have only lost the 325. So if you have the cash, and need it, buy it right away. If you are going to save, save at a rate that beats inflation.

So If you want/need something it's best to by it as soon as you have the cash. Spend it.

IF you don't want/need something then save it at a rate that beats inflation. Save it.

clear as mud?!

Answer 4

U must spend wisely and save the remaining for a rainy day. rainy days do come, when we are least prepared. It is foolishness to save all the money and spend nothing.

Answer 5

I think you should save as much money as you can. You never know what could happen in the future!

Answer 6

it is always better 2 save 4 d future. you should hav 3-6 months of your salary as saving for any emergency.

Answer 7

Balot - Definitely save money until U really need it 4 something.