How to save without sacrificing the things you love

Published on: March 2, 2020

Written by:

Adam Faulkner

For the vast majority of us, our financial resources are limited, and we need to be conscious of how we spend our money. So, how do we live the life we want today and still save for the things we know we will want and need in the future? 

It is possible, but you need to make trade-offs. The key is aligning your values and your financial goals. By working out what is important to you now, and what will be important in the future, you are able to work out where you should and shouldn’t be spending your money.

For example, if you know you want to get married, buy a property, or start a family in the next five to ten years, you will have certain money goals you’ll need to meet and some spending habits that may need to change, especially if you currently live pay cheque to pay cheque.

To save for these major life events, you need to examine your spending habits today and think about what changes you can make. You want to ensure you are still able to do the things that are important to you, whilst also squirreling money away for what you will need in the future. 

Does your spending align with your values?

If you understand what you are currently spending your money on and why, then you can start to make trade-offs that will work for you. Start by going through your monthly expenses line-by-line and ask yourself, why is this purchase important to me, and does it align with my values? If it doesn’t, then cut it out. 

If it does align with your values, then ask yourself: is there a more cost-effective way of achieving it? This doesn’t necessarily mean you need to cut things out, just look for alternatives that might not cost as much. For example, if you spend $100 on brunch with friends every fortnight, ask yourself, is it eating out or spending time with friends that is important to you? If it is seeing your friends, then organise collectively to start hosting brunch at each other’s houses. This will significantly reduce the cost but still hold the same value for you.

This approach isn’t about waving a magic wand. It’s about being conscious of what’s important to you today and in the future, then creating a budget that centres on this.  It will only work if you allow yourself to still keep the things you truly value, and then are disciplined about how you spend your money. 

Make your savings work for you

Don’t just stop at cutting out unnecessary expenses; make sure the money you are saving now is working for you and helping you to achieve your financial goals sooner. You can do this by re-allocating the money you would otherwise have spent and investing it, getting you a better return over time.

Stuck on how to make it work for you? We offer a 20-minute consultation to discuss your specific requirements free of charge. Click here to book a time that suits you. 

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