Spending & Saving Too many people spend money they haven't earned to buy things they don't want to impress people they don't like. ~Will Smith

Spending & Saving

Original Article Posted On: February 10th, 2014
Article Last Updated On: May 1st, 2017

The math is quite simple: Spend less than you earn.  If you make a dollar and spend 75 cents you’ll be fine; if you make a dollar and spend $1.10 you’re in for a world of hurt.

Good News!!! You’ve gotten some of the basics down and you’re starting to feel more confident.  Congrats!  This section deals with both spending and savings. The more you make, the less you spend & the more you’re able to save.  This in turn leads to more money you have in your pocket to do other things (Retirement, kids college, investing, giving).  This is the first real step you’ve taken towards financial freedom.   Just hearing that word probably works up images of you driving a convertible down the coastline, wind in your hair.  Or in my case, wind through my remaining hair.

What I don’t want to focus on is savings alone. I believe being financially fit doesn’t mean suffering for 20 years of your life to enjoy the next 20. Being savvy about money will lead to fantastic opportunities later but it doesn’t mean you have to sacrifice everything for the later (this seems to be the new mantra of a lot of PF people).

I would rather work till i’m 50 and retire having lived my life then work till I’m 40 and retire having never spent a dime. Saving money is a really good thing to do. Starting a plan early is a really good thing to do. Not ever taking your future wife/husband out to dinner because you want to save $40 is not a really good way to live.  That is why I have combined both Spending and Saving in this section. It is not one or the other, it is a happy melding of the two.