How NOT To Be A Spendthrift

When is the right time to spend money? This is one question that might have cropped up in your mind time and again. All you want is a general answer that will help you solve out the riddle. You have a hidden desire to splurge well, but not at the risk of landing yourself in trouble as far as your retirement fund is concerned. There isn’t an appropriate reply as each and every situation is different from the other, but this guide may help you in taking the correct decision. There are two types of people when it comes to spending money. The first type loves to spend each and every penny they have, and the other hardly shells out cash unless absolutely necessary. But ideally, we don’t want to be spendthrifts.

The Impulsive Buyers and Spendthrifts

Obviously, impulsive buyers are the ones who enjoy shopping the most. Their annual income, whether it’s $10,000 or $ 100,000, is of little significance to them since they would love to live life by penny to penny. When something intrigues them, they just get hold of it. In recent times, such impulsive buyers have become increasingly irresponsible because, in the absence of cash, they are availing credit cards and piling up huge debts for themselves. Paying off their monthly dues becomes an uphill task, and they spend years to repay the borrowed money.

The Thrifty and Frugal

There are people who hardly spend a penny. The urge and temptation to splurge or to spend is something they prefer to keep themselves away from. It’s a one-way traffic for the money they have stacked up in their bank accounts with the exit door completely closed. Such people enjoy a good living, and in the due course of time, are richer than you ever thought they would be. Saving each and every dollar is the mantra they believe in.

For The Rest, It’s Not an Easy Task

Most of us prefer to walk along the lines of either saving or spending, but rarely the extremes. In some instances, we splurge on things we love. Though we also love to spend money on others, we can’t do it as often as we want. Then arises the question of when’s the right time to spend. As stated earlier, there isn’t a definite answer to that, but the following things might help you decide:

Prepare An Objective And Chalk Out A Plan

Physical limitations do not allow us to work for our entire lives, and we choose to retire at a particular point in time. That’s the period when we start relying heavily on our savings. Everyone needs to plan out their expenditures well beforehand in order to have an enjoyable retirement. Savings for each month should be well planned out, and the rest will be easy for you to figure out.

Try To Take A Lesson From Others

Some of our friends may either be spendthrifts or thrifty. Try not to match up with your spender friend’s lifestyle and assess whether their purchases are worthwhile or sensible. Diverting your attention to other situations might help you in controlling your temptation to shell out money. Now, if you look at your friend who hardly shells out a penny, you may start thinking how on earth can that be possible. Try to ask them and take their advice. This kind of people will give you priceless cognizance about the importance of money. You can definitely take a lesson about how to spend and stay happy.

What Can Life Be Like Without Overspending?

Before making up your mind on whether to shell out that penny while shopping, try to imagine what your life would be like if you don’t. You will realize that you end up being happy even if you don’t splurge on that new laptop or expensive lotion or new shirt. Sure, buying whatever you want may lead to a sense of fulfillment, but acquiring something new all the time wouldn’t really make much of a difference.

Try to follow the tips stated above, and at the end of the day, you will surely get an idea of when and where not to spend your money. Once, you get a clear picture of that, it will be a lot easier for you to assess the appropriate time to shell out that hard earned penny.