It is important to find a balance when it comes to money management. I am sure that you know people who are so careful with their money, that they never take the time to enjoy it. They do not go on long vacations, buy toys for their children, or give to others. Their focus is to save, save and save some more! And I am sure that you know people who take no thought for the future, or even for the present. The simply buy what they want when they want, even if it means financing everything. Both of these extremes lead to negative feelings towards money, and the situations that they are in.
So how do you find the balance for yourself? How do you decide how much to save and what to splurge on? It is important to realize that the answer is going to be different for everyone. Some people would prefer to save money rather than enjoy a nice meal out. Others feel that they need a nice vacation once a year, but are willing to sacrifice in other areas.
One way to make sure that you have found a good balance for yourself is to make sure that you really do have control of your finances. You should have money set aside for emergencies, you should have begun to save for your retirement, and you should be working on becoming debt free. Once you have done these three things you should have a peace of mind when it comes to money. Of course you do need to be living below your income.
Finding this balance when it comes to money management allows you to live your life the way that you want to. You can make decisions about staying at home with your children instead of working outside of the home. You can decide to quit the job you hate, because you have your finances under control and will be able to manage for awhile. You can also pursue your lifelong dream of opening a new business or traveling to Europe. When you have your money under control, you choose the direction your life takes, which can lead to a greater peace of mind.
At the same time, you can become too focused on the goals of saving and managing your money. You may have specific goals set up for an early retirement, when you realize that because of a family difficulty your plans will have to change. This is not an easy adjustment to make, but it is important to be flexible enough so that you can do what is best for yourself and your family. This flexibility will allow you to enjoy life now and in the future.
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