Here are six of my best tips on knowing when it's ok to spend money.įUN MONEY. There are several ways to spend money so that you can test out to see which works best for you. If you have a budget or spending plan in place, it is ok to spend your money. By having a little wiggle room in the form of $20 a month, you'll still know that you are still working toward your 3-month emergency fund goal while not totally depriving yourself. Instead, choose 1-3 things money goals that are important to you for you to work on, and give yourself some wiggle room while you work toward achieving them.įor example, if you are working on topping off a 3-month emergency fund, you could either buckle down and put all of your energy toward it OR give yourself an extra $20 a month to spend for fun. Don't have a million and one financial goals. Make sure you know how much money is coming in, how much money is going out, and you have a handle on the ins and outs of your personal finances.
Make sure you have some of the pillars of personal finance in place to give your money and mind space to stop worrying about money. Here are two of my best tips for dealing with money worries. So I strongly encourage you to remove yourself from being subjected to messaging that makes you feel shame about money. If you've bought into those messages, of course it makes it difficult to stop worrying about money. Think we could do a neighborhood walk instead?"įor years, the dominant message in personal finance has been, "it's your fault if you are struggling with money!" In the personal finance industry, so many messages uphold the value of not having debt, saving money, and not spending on "frivolous" items. It sounds like this "going out to dinner isn't in the budget for me.
So I'd encourage you to be super precise with yourself and your friends. So if you are in financial survival mode, be straightforward with people in your life about money. And in that case, of course, your frugality is more about survival mode. You may be struggling financially and are having a hard time. With most things money-related, there is a huge asterisk here. And not just afford things financially, but afford time with family, friends, and doing something they love. Instead, they prioritize saving their money so much that they forget about the value of enjoying life and what saving their money can afford them. The saying that comes to mind that captures the difference between being smart with money and being cheap is "penny wise and pound foolish." The meaning behind this saying is being so frugal about money, that a person loses sight of the importance of living their life. While it's difficult to quantify, it ultimately comes down to financial ability and how a person feels about their money. There is a difference between being smart about money and being cheap. In this episode and corresponding blog post, we'll cover the questions "Am I cheap? Is this financial anxiety? How can I stop worrying about money and spend intentionally?" Am I Cheap? Am I Too Frugal?
Think: The gift that is enjoying donating to causes you care about, buying that thing that makes you feel tingly, or the excitement of spending a little more on a meal out plus a drink and dessert.
After clipping one too many coupons, have you ever thought, "Am I too frugal?" There's a lot of talk about the importance of saving (and it is important), but it's also important to find joy in spending your money.