Spending money vs. Saving money
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  1. #1

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    Default Spending money vs. Saving money

    It's frustrating knowing that I should save but there are things that I want...and things I have to pay for and I end up just paying bills and throwing the rest into savings and not really "rewarding" myself because I'm afraid of spending money or rather, what if I need it later sort of thing. Also for me, it feels like once I place the mony into my savings I feel like I should never take any mony out but at the same time, it's like...what am I saving for? I just want to figure out how to spend my money (or save my money) whichever way you look at it.

    So yeah I was just wondering if you guys can tell me a little bit of how you handle your money.

    Do you have yourself on a budget (how much you allow yourself to spend)?

    Assuming you do have a savings account, is it strictly there just for emergencies or something or are you actually saving up for something?

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    Registered User dcompton's Avatar
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    Well, I don't know that I do anything very systematically, actually. As for savings accounts, I have at the moment 2: an emergency fund, with is for the big catastrophies, like job loss, and I think of that on as untouchable. However, I also have to say that I gave myself a $600 loan from it recently. Since I'm single, my tax refund was only $600 and I wanted to take full advantage of the Kroger gift card deal, the $1200. By taking out that other 600, and buying the gift card through my cash rewards CC, I got 15% bonus, or $90, which is a heck of a lot more than I'm getting in interest. I'll replace it while I'm using the gift cards for food. I would not use it, except for a clear advantage and plan for quick replacement unless it was a real bona fide and serious emergency.

    The other one is where I put aside money for annual and semi-annual insurance payments. I call it my "In and Out" account. That, silly as it is, convinces me that yes, this money can come out.

    I am considering opening another to gradually start saving for a new recliner. This one seriously needs to be replaced, and given the pain I sometimes have, I consider a good recliner a need, not just a want.

    However, I think given the uncertainty of the economy, saving and keeping hands off is going more important than ever. I would suggest, perhaps, having different accounts with different levels of "emotional accessibility."

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    Makes sense to me Donna! Thank you for sharing, and what a wonderful plan, IMO.

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    Registered User Frugal Nurse's Avatar
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    You are such a disciplinarian. KUDOS!!!!

    As in anything - you will burn out!!
    I get that urger every now and then - and so, that's when I go out and buy myself a new bra or panty - maybe if I'm real good! I'll get a matching pair.
    Or just some utilitarian thing.

    It's relatively benign. Non addictive (like purses) Not too expensive (like shoes) and nobody can tell (cuz no one looks!)

    So, I allow myself $20/week to spend. I hardly even spend that - it accumulates and so... might as well head to VS!

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    Registered User The Muse's Avatar
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    We're dual income, high earners, aren't having kids, and are committed to a simple lifestyle. A budget for us would be overkill.

    I have a plan to pay off the mortgage within 4 years, so a big chunk goes to that, then living expenses. Everything else goes into savings or the investment accounts.

    We're not saving for anything at the moment, but if we decided to make a big purchase, I wouldn't hesitate to take money out of the savings account. We have well over a year's living expenses in savings, which I consider the EF and I would not let the balance go below that. I do not touch the investment accounts under any circumstances.

    I know I'm tighter than I need to be, but there isn't really anything I want at the moment and I'm not into spending money just to not be tight. In general though, I think there needs to be a balance between spend vs. save.

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    Registered User tkn4lif's Avatar
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    I admit I have that same mentality at times. "What am I saving for?"

    In fact just this past weekend I finally bought a kitchenaid stand mixer. My DH finally agreed that I could get one. I got a pretty good deal at target (using a gift card too). It was my reward and I deserved it.

    Bottom line, you only have one life. Enjoy it. If you want to splurge a little every once and a while do so and don't feel guilty about it.

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    Registered User cheapskate 49's Avatar
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    I think everyone needs some money to spend anyway they want so we always took an allowance,even $10 a week to buy"whatever".I don't always spend mine but it usually goes to to buy more fabric

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    Quote Originally Posted by tkn4lif View Post
    Bottom line, you only have one life. Enjoy it. If you want to splurge a little every once and a while do so and don't feel guilty about it.
    Sometimes, I will deny myself fun just to save money. I'm getting better about not doing that. Scrapbooking supplies eats a lot of my entertainment budget but it's something I enjoy doing.

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    When single I always had:

    1. checking account to pay bills
    2. savings account to grow - not ATM accessible
    3. ATM account - a bit of check went in there every week and whatever was in it I could blow. So I didn't worry about piddling away my savings without realizing it or worry about making this account grow. It was my going out money, my yarn money, my book money etc.

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    I'm in the middle of saving our 6 month EF and all my extra money goes towards that. I don't separate any money out for splurges or blow. What I do is, if I need something that's not in the budget, it comes out of the money I intended on putting in the EF for that paycheck. So the EF gets $20 or $100 less or whatever so I can buy those shoes, pay for that class, or go out of town for the weekend.

    I don't like having a bunch of separate pots of money around for this and for that, or one big pot of money that's used for 6 different savings goals, it's too confusing for me. And right now my wants and needs are pretty reasonable and I'm very responsible with my money and keeping myself in check so this system works for me.

    And in one month I will actually be dipping into the EF (which I have never had to do yet) to take advantage of a really good deal on a used car that we are going to buy. That was the next thing that was on my list to save up for as soon as the EF was fully funded anyways so I just get to accomplish this goal now rather than later so I'm okay with it.

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    Registered User MomToTwoBoys's Avatar
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    We've only been budgeting money since June and this month, we're finally seeing the benefits of what we've been budgeting. Our main goal is to put at least some money into savings and if we want to, we can spend little bits and pieces here and there. I let DH have his smokes because that's his vice ( I used to smoke so I know how hard it is to quit ) and my vice? Spending a little bit more on the kids' birthday. I used to spend my money on things that in the end I didn't need. I came to realize that I can splurge a bit ( but not too much ) on things we need and I don't need to spend all sorts of money on stuff I'll end up tossing out or not wearing again to be happy.

    For example, oldest DH has his tenth birthday coming up. I'm going with a dinosaur theme for it, complete with a custom cake that I'm doing myself. I bought a new pan and some candy writers, along with some other stuff. So instead of going out and spending 20 dollars on a DQ cake, I'm spending more than that and making the cake myself. I'd rather spend more and do something, feel rewarded because of it, than spend less and have someone else do it. There's sort of a "labor of love" in making that cake on my own.

    I don't spend as much money as I used to, but I do still spend some. I find that if I put every single penny away into savings and not spend some on myself, I'd probably be pretty miserable. I set limits; I stick to those limits and allot myself some that makes me feel good.

  13. #12
    Registered User Clutterbug Jen's Avatar
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    I'm saving but really don't have any specific thing that I'm saving for.

    I think if I did then it'd probably be much easier for me to save.

    One of these days I need to sit down and to start thinking what it is I want to save for and then put that money in a separate envelope from my EF.

    I have $15.00 in my EF [bank account] but also just bought a locked fire proof box where most of it is [I think nearly $200.00].

    So what I'll just put the envie in the box with my EF but keep them separately in there.

    Love,

    Jen

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    Registered User Mamaof2rugrats's Avatar
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    I haven't accumulated too much in the savings account. I did have quite a bit(well considering what I make) but wrecked my car and had to buy a new one right quick. I've been building it back up slowly but surely and don't take money out of it for anything short of car troubles, new appliances after one brakes,etc etc.

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    Registered User JanieD's Avatar
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    My system/budget for savings is basically 2 categories. First for upcoming bills like insurance, taxes & such I need to save for each pay period. The second is for unexpected/not planned stuff like car repairs, doctor bills. I really dislike taking money out of my savings since it looks like I'm not getting ahead... bank balance growing then I'm spending (even though its for needs). My savings has taken major hits over the last few months & its really hard to build it back with everything costing more. I find myself not buying much of anything so I can continue to save. I finally spurged on eBay goodie last week. It was under $9, but felt I should have spent it on something more useful.

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    Registered User Wendy99's Avatar
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    We have 3 accounts right now (just recently did this).

    Chequing Account - everyday expenses, mortgage, insurance, bills, groceries etc

    Savings Account - for big upcoming expenses ie. right now $4000 in for roof and patio door

    Savings Account - Emergency Fund I have about $1700 in that account (but actually only $1000 is for the EF, $500 is my dh income for when we're on vacation to cover mtg etc, and $200 (soon to be less) is for our camping trip so far - need some of that money for my kids bday party this weekend.

    So far it's working but can't wait until the big expenses are gone in September and I can rework our plans.

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