Business & Finance

Finding the Balance Between Saving and Spending

Finding the Balance Between Saving and Spending

There is no denying that we live in a fast paced society and it is not uncommon to encounter someone who lives and breathes their work, with the inability to find that balance between earning and spending. The truly balanced individual is the one who knows how to find the equilibrium between earning and spending which takes away the stress of being a workaholic. CEO Shalom Lamm of the organization Operation Benjamin has often espoused such ideals, as he has spoken many times on the necessity of work and life balance. Lamm has said that he well understands that one needs to work to earn money to cover necessary bills, and working is of course a normal part of everyday life. It is also true that some people work too much, which is not healthy, and that a necessary balance must be reached. There are many ways in which this can be done.

To begin with, one should carefully go through their monthly bills and see where money is being spent and where there is unnecessary excess. In some cases, a person might find that they are still subscribed to services they no longer use, are donating automatically to causes they no longer support, or perhaps are spending too much for services that can be found elsewhere for a cheaper price. Cancelling unused services is one way to stop the outflow of money unnecessarily. Shalom Lamm also thinks that another way to seek balance is to work from home if one is able. Working from home eliminates long commutes that can drive up fuel spending, but also allows for more time to be spent with the family, rather than adding on commute time when work is finished.

It is also important to get into the habit of paying yourself first before spending any of a paycheck. What this means is that all monthly bills and a dedicated amount sent to savings should be handled first before any other spending commences. Covering necessary bills ensures that obligations are met, and putting something into savings each month ensures that some is set aside for retirement. It is always helpful to also create a budget and stick with it. Financial apps such as Mint are wonderful tools to help create budgets, as they will not only track spending into categories, but will also alert you if you go over budget or if there is suspicious spending activity on your accounts. One should avoid putting too much on credit, and adopt the attitude of not spending money until it is earned. High interest rates can often whittle away at savings or salary increases, such that the person who is working more and earning more won’t feel that extra salary increase as it is being eaten away by credit interest.

One should always live within their means. Don’t get into the habit of spending more than you earn, and seek financial counseling if things seem out of control. These strategies are tried and true methods of ensuring that spending and saving remain in balance, and stress remains at bay.