Saturday, May 15, 2010

Extreme Saving Money Approach Does More Harm Than Good

Going to extremes in saving money actually do you more harm than good. It is similar to adopting a crash diet where you suffer from yo-yo weight gain and loss.

Your life also becomes miserable when you cut every non-essential cost from monthly expenses. This means eating instant noodles and leftovers, no entertainment, no socialising, wearing tattered clothes, etc.

I don't know how you can sustain such a miserly and boring lifestyle... I can't and it defeats the objective of saving money and building a retirement nest over the long term.

Worse still, such extreme saving may drive people back to their old spending habits with a vengeance. Just temptation of juicy steak and wild parties after eating beans or staying home for a month.

A successful money saving plan involves a healthy and balanced approach where you review your spending, identify areas of high expenditure and find ways to make savings, without necessarily having to cut back completely on everything.

You can go out with your friends twice a month, rather than every week or supplementing some expensive dinners with cheaper dinners in your weekly shopping.

By balancing your savings against your spending, you do not then deprive yourself completely, making it much easier to continue saving in the long-term.


Jonha @ Happiness said...

Anything that is in excess of what's required or ideal is always harmful. This is a fresh perspective for me and I appreciate you sharing