When people ask, they often want someone to give them a general answer that will solve their problem.\u00a0They want a step by step guide because they want to splurge but don\u2019t want to jeopardize their retirement.<\/p>\n Sadly, there is no cookie-cutter answer since every situation is different, but what I can do is try to guide you to make the right decision in case you are wondering about this.<\/p>\n There are two types of people who don\u2019t have any problems deciding when to spend money: those who spend every penny and those who never spend any money.<\/p>\n These people just seem to have more fun.\u00a0They are the ones with the new cars, nice house and their kids always seem to be wearing new clothes.\u00a0It doesn\u2019t matter if they are earning $200,000 or $20,000 a year because they will still be living paycheck to paycheck.<\/p>\n When they see something of interest, they buy it.\u00a0In recent years, these people have gotten even less responsible because even if they don\u2019t have the cash for the item, they use their credit card.\u00a0Eventually, debt catches up to them and they are unable to repay the monthly payments.\u00a0Their dream life is taken away from them and they need to spend years repaying the money that they borrowed.<\/p>\n Some people never spend any money.\u00a0It\u2019s almost like they were born without the temptation to spend. Money in their saving accounts is like mail in the post office mail drop \u2013 there is only a way in and no way out.<\/p>\n These people can earn a pretty good living and be really wealthy without anyone knowing.\u00a0In fact, I suspect that some of them don\u2019t even know themselves.\u00a0They save every dollar they earn and never seem to enjoy buying anything.<\/p>\n Most of us are either more of a saver or spender but seldom the extremes.\u00a0We know the importance of saving but we also splurge every once in a while.\u00a0We like to buy new clothes for our kids but understand that we can\u2019t do this every weekend.\u00a0We all want to know \u201cWhen is it appropriate to spend?\u201d<\/p>\n There really isn\u2019t a magical answer but here are some things to consider when you have decide for yourself:<\/p>\n At some point, we all retire because of physical limitations.\u00a0We will start relying on our savings with some help from social security.\u00a0If we plan this right, we will have a very enjoyable retirement.\u00a0Planning will involve some mathematical formulas but one thing you will know is how much you should save each month.\u00a0Once you figure that out, you can spend the rest.<\/p>\n You probably have friends that spend too much or friends that never spend enough.\u00a0Why not learn from them?\u00a0Instead of trying to always match everything that your \u201cspender\u201d friend buys, why not try to assess whether his purchases make sense?\u00a0Learning to think about different situations will divert your temptation and help your urge to spend.<\/p>\n On the other hand, if your friend never spends any money and you often wonder how it is possible, why not try to ask for their advice? These people often provide valuable insights into what money and materials really mean and you can probably learn a thing or two about spending and happiness.<\/p>\n To determine whether the money is worth spending, I usually try to think of what life is like if I don\u2019t spend that money. Often times, I realize after some thought that I end up just as happy even if I don\u2019t buy the thing I really wanted.<\/p>\n I really wanted the iPad when the tablet came out but I figured that life is actually the same with or without it, so I didn\u2019t end up getting the unit even though I can afford the purchase. On the other hand, I know that moving to a new apartment would make Emma and I much happier, and thus, the decision to spend more money was simple.<\/p>\n Do this exercise enough, and you will know when to splurge and when not to spend.<\/p>\n![\"when](\"https:\/\/moneyning.com\/wp-content\/uploads\/2008\/08\/photo-1489348611450-4c0d746d949b.jpeg\")
One of the questions that often pop into my inbox is \u201cWhen is it appropriate to spend my money?\u201d<\/strong><\/p>\nKnowing When to Spend is Easy for Some<\/h2>\n
1. Natural Born Consumers<\/strong><\/h3>\n
2. We Cannot Save the Earth But We Can Save for One<\/strong><\/h3>\n
![\"when](\"https:\/\/moneyning.com\/wp-content\/uploads\/2008\/08\/splurge-save.jpg\")
For the Rest of Us, It\u2019s Not So Easy<\/h2>\n1. Have a Goal and Plan<\/strong><\/h3>\n
2. Learn from Others<\/strong><\/h3>\n
3. What is Life Like Without Spending that Money<\/strong><\/h3>\n
4. Know What Is and Isn\u2019t Important to You<\/strong><\/h3>\n