LIFESTYLE & TRAVELBUDGETINGCOLLEGE

Letting Go of Financial Fears

Budgeting is an important life skill that can lead you to financial security. Common advice related to finances often revolves around reducing spending. But what if you’re too cautious about spending? Most people would describe me as a good saver who is very financially responsible. But I would personally describe my relationship with money as negative. This is due to the fear I have related to spending my money — even if I’m in a financially stable place to do so.

Knowing When to Spend Money

While learning to save is important, being too conservative in your spending can end up hurting you financially in the long run. For example, if I go for the cheaper option of buying a used computer or car, I may end up having to replace it much sooner. This could lead to me spending more money than if I had just gotten a new computer or car in the first place. Certain items meant to be used for the long term are expensive for a reason. It makes sense to splurge on items like shoes, mattresses and electronics — you won’t have to replace these things often, and you use them every day.

When I find something I want to buy, I try to wait a week or two to see if I still want to purchase that item, or if there’s a better alternative elsewhere. By ensuring that it’s not an impulse purchase, I feel more secure in spending my money on that item. Long-term gratification comes with the risk of the item selling out, but it can also make you value your purchases much more because you waited for them. It can also be helpful to focus on capsule wardrobes where you can purchase a few quality items that you know will get used frequently or calculate cost per wear to know an item will be worth buying without guilt.

Understanding Personal Circumstances

Budgeting is not always a tool of financial conservation. Sometimes it’s a way to maintain awareness of your money. Knowing how much money you have coming in can empower you to make purchases beyond necessities. You may have heard the phrase “pay yourself first” which means to put aside savings funds when paying bills. But you also must pay yourself in enjoyment. Including fun spending within your budget is key for socialization and mental well-being.

As someone who struggles with spending fear, I recommend identifying what caused your fear toward money. Was there a time you felt financially unstable that’s still affecting you now? Recognizing past events can be a great way to start deconstructing the why behind your money mentality. If your financial fear is extending into denying yourself necessities or medical care, it may be helpful to see a professional about your anxiety. If you’re struggling to make ends meet, these are valid fears, but your safety and well-being take utmost priority.

Sources:

https://novamoney.com/blog/6-when-excessive-frugality-becomes-a-poison/

https://www.financialsamurai.com/stop-frugality-from-leading-to-lifestyle-deflation/