In our quest to save for various goals, developing a fear of spending is possible. To conquer this unhealthy fear, align your spending with what you value.
We cannot emphasize enough the importance of saving, but if you cover the basics, like having an emergency fund and saving consistently for retirement, spending money on yourself sometimes is no crime.
Ultimately, money is a tool that helps us to do things and enjoy life. There is no reason to deny yourself happiness because you’re paralyzed by money fears.
As long as you are not up to your eyeballs in debt, you can allow yourself a little fun here and there. The key is to do it responsibly by creating a comprehensive financial plan and identifying what truly makes you happy.
If you have an irrational fear of spending, take these following steps:
— Create a plan. It should outline how much you bring in, your expenses and savings. Knowing what you can afford can alleviate your stress when you’re concerned about cost.
— Identify your values. What makes you the happiest? Money can create happiness if you use it wisely. A general rule of thumb is to choose experiences over things. Material possessions tend to lose their luster shortly after you purchase them, whereas memories of a fun trip with family or friends last for years.
— Prioritize your spending. What’s more important to you? You must prioritize your spending so that you can enjoy your discretionary income fully.
For example, if a vacation with your old friends is your top priority, you can skip a happy hour out with co-workers. Conversely, if building good relationships with co-workers is more important, then allow yourself to spend money on events that bring you closer to your goal.
— Diversify your income. Sometimes you fear spending money because you’re worried about the “what ifs.” Address these fears of scarcity or instability by earning some extra money. If you were to lose your main source of income, you would still have something to help you get through a tough time.
Start by doing small jobs, like going through your old clothes and selling them on eBay. If you have more time, find a consistent part-time job, whether that’s freelance writing or mowing lawns.
— Spend your time. If you can’t think of anything you’d rather spend your money on, maybe it’s not about the money.
Think about a cause that means a lot to you and offer your time and skills to it. For example, most animal shelters need volunteers to walk dogs or clean up the facilities, and other causes might need your help to fundraise. Be open to whatever they want you to do.
Sometimes, what makes you happy costs very little, but sometimes, you have to spend more to realize your goals. By determining what is important to you, you can enjoy life and take care of your future at the same time.