Controversial title, right?
What I mean by that, is many people (myself included) are under a general belief that saving as much as you can in every area, is the best PF thing you can possibly do.
What we fail to mention is that we also have to have a balance that cannot be quantified by $$$$.
Generally speaking, people spend too much money, so this advice is helpful to most.
But what about us who already save at least 10% a year?
Should we go down to as far as we can, ignoring our wants, just to make it to saving 12% a year?
I could save even more but I don’t want to
I know I could save more money if I cut out even more in my budget, but frankly I don’t want to and I don’t need to.
Call me stupid or selfish, but it’s a choice I make because it’s my money.
For instance, I am well aware that spend on things that have no practical value or purpose, especially seeing that I already have the basics in makeup & toiletries, and clothing & accessories.
You have to have a balance
You have to spend on what enriches your life and makes you happy, or else, what is the point of having all that money?
For instance, I wouldn’t spend on a gym membership because not only would I never go, it isn’t something I enjoy doing, however that’s my personal preference.
For others, they might even feel guilty for buying a gym membership when they can do all of these free exercises at home, or outside, but they just simply prefer being in a gym.
After a workout, they feel mentally balanced, they like having all the equipment there, and it is just worth it to them, even if it isn’t the cheapest option optional.
To that, I’d say: Spend on that darn gym membership, already!
Conversely, just spending like crazy and going into debt for it and/or not saving a penny is not good either, but realistically speaking, not everyone can be frugal in every aspect of their lives all the time.
I applaud those of you out there (I know you exist!) who can do it, but I am definitely not in that group.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
Saving is SOOOO hard sometimes. I had to consider debt consolidation a while back and contacted some professionals. Honestly, I am so glad I did. I am on the right track now and really have my prioities in order. Great article, with a great point of view. Thank you for shairng.
For me saving was equal to becoming free. Once I saw it like that saved as much as possible. I saved over 50% during 12 years, and than I was free! I left my job at 41 years of age. Now, 5 years later, I am very happy that I saved as much as possible. It is not saving, it is getting free!
Minimizing debts and having educational and health plans;
when I’m already able to attain this goal that’s when I consider myself lucky
and happy. I could cut out spending on unnecessary things just to be
financially stable.
I totally agree about the “balance”. We must find a happy medium to be happy. Life is short and I say if you can afford it than go buy it and every now and then even if you can’t. That is if it’s something you really really love. I don’t mean to run out and buy, buy, buy not worrying about the future. We all deserve a treat now and then. The way I see it is if I don’t smoke, drink, spend a fortune clubbing on the weekend, I am entitled to those brand name jeans or giving my kids their brand name sneakers.
I could cut out a lot that I spend on…but it wouldn’t make me happy at all to do so. I’m still saving enough for my age/income level/debts. I totally agree that it’s imperative to have a balance. What is important is finding whatever works for you! We’re all different.
My climbing gym membership! But I love it so I have no regrets about spending money on it.
I spend close to USD$60 per session on a personal trainer who I see once a week. I have been getting personal training sessions on and off the last 2 years. I do think it’s quite an extravagant thing to splurge on when I could just easily use the things I’ve learnt during the sessions and work out in the park myself. When I’m not working(i.e. in between contracts or permanent work), I have been easily able to drop the sessions. Now that I’m employed full-time again, I could save soo much more by just not having a trainer, but it’s been really good for me. I’m fitter than I ever was as a teenager and I’ve dropped 3 dress sizes. However, should I run into lean times again money-wise(no pun intended), I have proved in the past that I can quickly and easily chop out luxuries such as personal training/weekend jaunts/clothes/gadgets/etc., readjust my budget and focus on finding work.
I’m somewhat lucky that I moved to a citywhere baristas just seem completely inept at making coffee. It’s cured my latte habit! (as did my personal trainer telling me how many calories there are in a latte…)
Great food for thought! i usually start all things PF related with a WWGD (What Would Gail do? 😉 Do you follow her:http://gailvazoxlade.com/blog/ ? You both share a common sense approach, thanks for sharing!
Generally I found that 10% is not enough, I am afraid. Good savings rate is 20% and if you can 30%+ just to hedge against uncertainly – job loss, crisis, etc..
http://www.niterainbow.com/2011/12/when-is-10-annual-income-savings-rate.html
Hmm, that’s a tough question – I work out at home because I know I wouldn’t go to the gym either. Maybe it would be my membership to Zip.ca – I signed up after Blockbuster closed, but don’t find their movie selection great, plus I recently discovered a ton of DVDs at my local library, (again, not the best selection, but they’re free!)
I’ve been following your blog for several months and I don’t know why I’m just now commenting. But you write great stuff! I enjoy the posts that I’ve read. With that being said, I have to agree, again, with this current post. I have a gym membership and it doesn’t go to waste. The traditional/TV hype of save, save, save just doesn’t leave room of when it’s the right time to splurge. If you make $250k and max out on your retirement/savings/investments and spend $10,000 on entertainment, so what? That’s less than 10% of the income. Great post!
I agree.
I really think I could cut a lot out that I’m “splurging” on. I mean, if I really wanted to save money, why don’t I go back to living with roommates? Why don’t I cancel netflix? Heck, why don’t I cancel the internet and just use the free wifi at work and the library? Why don’t I change my diet to only eat canned food? Why not give up my cellphone?
Almost everything above the bare necessities is a splurge I could trim, but I don’t.
Bigger splurges I refuse to cut are: vacations, eating at restaurants, my ludicrous coffee habit, some spa services and make-up!
Well the gym membership is a perfect example because I just cut mine (which I LOVED) to save money. If it was a 30/month gym I would keep it, but it was 110/month because it was a pretty fancy gym. I DID have to sacrifice it FOR NOW because it was careless to be spending that much per month while I was barely hanging on and trying to save for an emergency fund. However as soon as I can, I would re-join in a sec. So yes, it’s all about what you value.