Staying afloat in a crunchy economy as ours has overtime spurred the need for a disciplined savings culture, which is quite understandable and important. However, striking the right balance in our finances by saving and spending when the need arises is equally crucial.
Overtime, the act of “saving for the rainy day” has grown on most people with saving portrayed as the only way not to go broke. But in reality there is always a time when it becomes necessary to get your fund out from that savings account and make the necessary expenses or even investment that would help maximise the value of your money overtime.
Financial advisers believe that while saving money is undoubtedly a good idea, saving for the sake of stocking up money is never a good mindset; else you will be hoarding money and not saving. For every saving embarked on, there should be a clear purpose and time frame when such need should be met.
A major tool in deciding the appropriate time to save, spend or even take a loan depends largely on an individual’s ability to prioritise his or her financial needs and even more so distinguish between your needs from your wants.
Meeting essential needs such as; buying your first home or car at the “right time” or even a health attention, are financial obligations that can never take a backseat over money,” believes Alex Hillsberg, a personal finance expert. To him, major medical needs such as emergencies and situations that call for immediate relief are priorities that must be met even when it means dipping into an already saved fund.
However, it is vital to discern wisely between really important health-related spending from products and services offered along the lines of health and wellness solutions such as skin care lines, supplements with no approved therapeutic effects, cosmeceuticals (cosmetics promoted like pharmaceutical products due to certain ingredients), and wellness services like spa massages that should not take the place of physician-prescribed therapies and medications, Hillsberg insists,
Also, taking out cash from your saving account to invest in a business plan, stock that has been proven to have the potential to return your cash with an additional profit is never a bad move.
Spending on techs might seem somewhat like a luxury but on a closer look its been proven that technology are here to improve and ease major areas of our existence thereby gradually becoming a necessity rather than a luxury.
ODINAKA MBONU
