Are you saving too much? Here‘s how you can know if you are saving or hoarding?
Merely saving your money in a bank account won’t help you grow your wealth. Check out these simple tips to manage your savings better.
Are you saving beyond your limits? This is called hoarding or accumulating wealth for unnecessary reasons. But, how can you exactly differentiate between savings and hoarding? Saving is one thing and getting obsessed about money is something else. A few traits of a hoarder are: Nervousness in spending money, incapability to give away money to anyone else (even for the right cause), inability to organize and keep a record of the money saved, getting doubtful while spending money and lack of ability to make a decision while spending money.
These are the typical characteristics of a hoarder (miser) when it comes to money matters. Savings is important, however, forming a possessive and doubtful opinion on money matters while spending it is a psychological disorder and should be fixed in time.
Let’s check some of the traits of a hoarder and how to fix them on time:
Don’t save for the sake of saving
First, ask yourself that are you saving for a purpose or just going on saving money for the sake of it? Suppose, you are earning Rs. 50,000 per month, but spending a small amount, let’s say Rs. 10,000 (compromising on your lifestyle needs), and saving the rest of money without knowing what to do with it. This is a serious problem where on one hand you are maintaining a poor lifestyle and on the other hand accumulating wealth that you don’t know how to spend.
Therefore, prepare a budget plan, figure out your basic and miscellaneous needs, and then start spending and saving accordingly. This will help you to live your present life happily and also save money for achieving future goals.
Saving money beyond needs
Do you keep collecting wealth for saving even if you have sufficient money already in the locker for future needs? This is not good at all, as this is precious money, which can be used for something important at present. Start using online savings and investment calculators to figure out the saving plans according to your earnings. In this way, you will be able to plan a budget for monthly expenditure and future savings at the time of retirement. Doing this, you can take care of your present life in a perfect way and also save money for future needs.
Reluctance in spending money
If you find pain and difficulty while spending money, you need to fix it soon. Remember, money should be used cautiously, but that doesn’t mean you should stop spending it. Savings for future will be also be spent for future needs, but it has to be spent. Make it habit to maintain a balance between your future and present needs, and start spending and saving money according to that. This will make your life better, happy and secured at the same time. Earn, spend and save money in a way that benefits you.
Anxiety while making money related decisions
Yes, money is important, but getting obsessed about it every time you think of spending it, is not good at all. It’s natural that if you always think about money, you have difficulty in making crucial decisions on money matters. This will lead to anxiety and stress. Therefore, stop worrying about worry, and think about prepare a financial plan of your own to figure out your present and future needs. Based on this plan, spend and save money to bring stability and freedom in life. Further, don’t accumulate wealth without any purpose, use it as per your needs and then save, seeing your future wants.
Don’t comprise on your lifestyle
For the sake of saving, don’t start compromising on your present lifestyle. By accumulating wealth for no reason, you are doing nothing but negotiating with your present needs. This may result in stress and anxiety. Therefore, don’t fear while spending money for your present needs, and then start saving the left out money for future. In this way, you will able to stay stress-free and happy while securing your future at the same time.
There you have it. Hope you will manage your savings without being a hoarder from now onwards. In case, you have something to say, make sure to pen down your thoughts in the comment box below. Further, you can also share this article across your circle to let your friends know about the process of earning and saving in the right way.