When we think about saving money, what usually comes first to our mind is to cut those goodies that we enjoy so much from our budget. However, some experts say that spending on things we like could even help us save.
If you have a big financial goal, cutting back as much as possible can help you reach it faster, but limiting yourself too much of the things you enjoy can often backfire, warns Chris Browning of Popcorn Finance.
“It’s okay to spend money on the things you really enjoy if you are willing to sacrifice in other areas, because if you deprive yourself completely, you are doomed,” he told Grow. “Life is too long to give up everything you enjoy just to save a few more dollars.”
For Eldar Shafir, behavioral scientist, when a person experiences scarcity, “whatever it is, that’s all they can focus on”, and when you see that something you really like is constantly off limits, you will think every time more on that.
The brain associates the word “budget” with deprivation, as it happens with the word “diet”, therefore, this can make it difficult to meet financial goals, explains financial psychologist Brad Klontz.
So contrary to what we’ve heard so many times, money experts spend all their time on what they enjoy and cut back on other expenses that we often think are essential: “You can spend extravagantly on the things you love and cut costs mercilessly on those things. things you don’t love, “Ramit Sethi, author of” I’ll teach you to be rich, “told CNBC, who says in his book that budgets don’t make much sense, precisely because they don’t usually work.
Browning, 34, paid $ 27,000 of debt in two and a half years. For that, he created a strict budget that he fully complied with during that time, but in which his favorite activity was contemplated: going out to dinner.
“This is one of the ways that my wife and I have spent time together over the years. It is also the way that I connect and spend time with friends,” explained Browning, who had already tried unsuccessfully to remove this. activity of their budgets.
The couple spent $ 400 a month on dining out, rather than saving or investing, and came to terms with the fact that keeping up his favorite activity was a good thing.
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