It might be hard to believe, but saving money might not always be the smartest play. Here are six examples of times when you’d be better off spending a little before you worry about your savings account.
Inflation
Truthfully, you shouldn’t be afraid to save money in the face of inflation, especially right now, when there’s no end. But if the cost of living is too much, focus on the essentials first. There’s no point in saving money if you’re struggling to afford groceries.
Much-Needed Quality-of-Life Improvements
We’re big proponents of saving money where you can, but there are many instances where you should purposely spend. The best example is quality of life improvements. While pricey, things like a new mattress or a new HVAC system are often worth the cost of how much better your life gets.
Think of it like this: if you’re not getting enough sleep, you’re likely struggling with energy levels, meaning you can’t make the most of your days, potentially keeping you from making more money with side gigs. It sounds like a stretch, but no one should underestimate what they’re capable of if they focus on improving their quality of life!
Making Sound Investments
This entry is more ambiguous because it will mean something different to everyone. But if you have an excellent opportunity to invest in something that seems like a no-brainer, it’d be silly to pass up making passive income.
Be warned: this will mean something different for everyone. Very few investments are truly “risk-free.” Still, as they say, sometimes you have to spend money to make money.
Spending To Reach Goals
Another reason to keep your money out of savings is to reach any financial or personal goals you have. If you could achieve it, if all you did was save a little less money, then save less. It’s much more vital to have fulfillment first; the opportunity to save will always be there, but reaching the goal may not be.
That said, you should also prioritize your goals. And if saving is at the top of your list, then focus on that.
Getting Out of Debt
Of everything on this list, getting out of debt is probably the biggest reason you shouldn’t save money. Excessive credit card debt couldn’t be more anti-saving money, so addressing it now with the money you’d otherwise save saves you in the long run.
All financial goals become more challenging to accomplish when you’re struggling with debt, so don’t delay by thinking saving money makes more sense.
Big Life Changes
Anything from divorce to moving across the country can take a significant toll on your expenses. These situations are always stressful and complicated enough on their own — don’t make it harder on yourself than it needs to be.
Avoid over-saving during these moments to keep enough flexibility for unexpected expenses, often stemming from significant life events. You’ll risk setting yourself back, playing catch-up for the foreseeable future to compensate for being overly frugal.
