Being frugal for me comes naturally because of the way my parents and grandparents raised me! I really do pinch my pennies so that they scream like the audience watching a “Nightmare on Elm Street” movie.
But not spending money when you are young is also a great waste (but of life instead of money)! When you are a teenager, it’s good to go out on fun dates and spend money to hang with your buddies! After you get a job and start a family, those opportunities become very rare (with dating no long a healthy option). So make the best of it now, you might not get another chance.
So what am I recommending? I would do the following:
- Contribute a certain amount to your 401(k) and savings/brokerage accounts.
- Cap the amount that you will spend on entertainment per month.
- Make sure you at least have $1,000 in savings in a bank.
www.zordane.com does a great post called: It Is Good To Spend More! I think he captures the younger crowd concerns especially well with his article.
For me personally, I think in the past, I saved too much money. I’m sure I missed opportunites that I would have take while I was a bit younger (teens and 20s…). Now, I’m playing catch up!
I think at every age, people should spend a little bit to enjoy life!
For more information, please follow the folling links:
Spending More Money For a Better Life, Part 1 of 2 &
Spending More Money For a Better Life, Part 2 of 2
-MR
You gotta live a little in life. Like you said, the opportunities are rare so you need to take advantage of them.
Being frugal does not mean not spending money, it simply means avoiding misuse and waste. Spending time with your friends or time with your spouse is certainly not a waste.
Cheers!
Brandon
@Brandon Schmid
Hi Brandon, welcome to my site!
Your comment is exactly what I’m trying to convey! I don’t want people to do into debt, but spend a little while you are young, because some of those things you can only spend money on when you are young…
Very true indeed. Sometimes we missed so much about life when all we care about is money. Yes it is important but we have to balance everything and still enjoy life.
@Christina
As long as you are still saving, it’s okay to spend and enjoy life. This is where a budget can really come in handy.
Thanks for mentioning my site! 🙂
Well, I really liked your 2-parts article and it reminded me that we should not waste time not spending money, lol.
It’s quite a different kind of logic, but hey, we only get to live once and what better way to spend it with than to spend it with our family and friends.
But, it doesn’t mean that we have to go out on a big blow out and at the end, leave us not a single cent.
It’s just knowing your limits and as you’ve mentioned, starting a spending fund. I definitely agree with that.
Make it a small fund to test with your budget and see if it works out. If you think it’s ok and not hurting, then go to add a little bit, not a lot!
Time is one investment we have that we should treasure and not waste.
@Benjie @ Zordane
:), I’m speaking with personal experience on that on. While I have spend a little, not enough… I missed some entertainment opportunities.
It all comes down to balance. Nobody wants to end up being a mizer… A budget would help tremendously, but creating and using one of those has a cost too. It’s tricky finding the proper balance…
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