Personal finance is always a careful balancing act of preparing for the future while not eclipsing your life today. Why? Because every dollar you save for tomorrow takes away a dollar that you could have enjoyed spending today. The opposite is also true and most seem to espouse this mindset over the former. As such they spend frivolously today and don’t worry about tomorrow because “tomorrow will take care of it self.” However, if your at this blog reading this I would presume that you’re more the former–someone who is more cautious about what they do financially today because they’re concerned about making sure that their financial futures are secure. This is the same issue Amanda finds herself in this blog post. For Amanda the worry about securing a her financial future leads her to stress over whether she is saving enough today. This was acutely apparent when she wanted to begin the process of purchasing a house but was plagued by the fear of am I in a stable enough position, financially, to do so. Because until one has accumulated enough savings, to the point that they can live on that alone, there will always be a trade off between expenditures today taking away from better securing your tomorrow. But despite that fact it’s not practical to hoard every single dollar depriving yourself of present wants until you reach your future goal. Thus, as Amanda discovered that until you reached that point of financial security you have to develop your own intermediary definition: one that gives you a clear delineation of when to save for the future but still gives you the permission to spend on things that would improve your life today.
While your definition will depend on your goals and your priorities, sometime its helpful to peak at someone else’s goals to use them as a template. I found Amanda’s work helpful in that regard and I think you might too. Click here to read more.