This post has been contributed.
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The importance of financial security cannot be overstressed. However, what can be overdone is the idea that saving and investing in order to build up your funds indefinitely is the main goal of any money savvy person. While saving is a sensible option and investments are a worthy component of any financial portfolio, there is little to say about when you should be enjoying you money and using it to give yourself, and your family, a fulfilling lifestyle.
Understanding Your Values
Money worries and money troubles are a common theme amongst adults of all ages. Even those who live comfortable and save well seem to spend a lot of time worrying that enough is not enough. Part of this is because they are not able to see all of their finances in one place to be able to make a judgement about their own financial security.
One way to do this is to create a spreadsheet listing all of your assets including your home, any commercial properties, your car or cars, your savings and investments plus any other items of value like jewelry or antiques. This will help to reassure you of your financial worth as well as show you where you can relax, where you can invest more and where you can use your savings. This is a lot of work but it is worthwhile to assuage your doubts.
Alternatively, you could look at Investormint for advice on apps that do exactly this for you.
Once you know where you stand with your money, you will be able to make smarter choices. Do you want all those antiques when selling them off could mean buying a share in a yacht? Are you prepared to defer your retirement for another year to pick up a bonus? What do you want from your money?
Enjoy Your Money
If you are financially stable then you should look into ways that you can make your money bring you the joys of life. For years you have watched the numbers trickle up but now is the time to get the things you want, see the places you’ve dreamed of or do the activities you’ve always wanted to try.
The whole point of money is to allow you to exchange it for things of different values: experiences, things and skills. There are no real rules, but assuming that this is your one go at life, you should prioritize your spending on fulfilling your goals, whatever they may be.
Savers can be the most difficult people to persuade to spend because it is such an ingrained habit. And yet, these people will benefit most from deferred gratification and be able to afford to do things that are truly incredible. If you are prepared to spend years scrimping and saving for the opportunity to take a year out in order to travel the world and see everything, then you should do it. Just make sure you actually do travel the world before it is too late.