Today I have a guest post from Debt and the Girl. Check out her blog!
Money is simply one of those things that there never seems to be enough of. It is a finite source with infinite possibilities. Most have to budget their cash and separate it to where it is most needed. Everyone has priorities in their lives that they must allocate their money. It is easy to spend money but what is it really worth to you?
I know some of the most important things to me is making sure I have a roof over my head and that I am saving for the future. The first one is obvious as I do not want to live under the bridge, but the other one is if not more important to me.
There was once a time that saving money was not a big deal. I was content with living from day to day without much regard to the future. I was eating out all the time and spending money that was not necessary on things such as clothes and electronics.
My credit card balance was being maxed out, and I was quickly realizing that the interest I was paying out to another company was absurd. The turning point came when I realized I was sacrificing my mental well-being for the thrill of having something new that day. It simply was not worth it any more. That was the turning point for me as I decided that it was simply more important to sleep better at night then try and have the most innovative gadget.
I began actually contributing 10% to a savings account from a part time job that I had gotten in addition to my classes.
My question is what is your money worth to you?
Is it worth buying things that you don’t need? It may seem like a silly question but it is one you make every day. Every time you put money into a savings account (instead of spending it on non-necessary things) is a time that your money is being put in something worthwhile.
Unless you have unlimited resources, every purchase you make is a chance you forgo to put that money elsewhere. The truth is investing money in a retirement account or savings account is at least a chance to make more money. It is an investment in your future rather just the present. The present is something that you may or may not remember but you will certainly remember a growing amount in the bank for when you really need it.
I am certainly not an economics expert but a great way to look at finances is to use simple math. It is much better to get some percentage of interest then spend money on things you will not remember a day, week, or month from now. The question is what is your money worth to you now? Is it something that you can easily part with or is it worth more? It is certainly something to think about the next time you pull out your wallet.
My comment: Great post! I need to always think of this when I buy things. Do I actually need that item? I'm always buying things that I won't even remember months from now, I need to be thinking about my savings and retirement.
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