This topic is not immune to controversies, as it is capable of generating lots of comments from all divides. And the interesting thing here is that everyone would relate to this according to where the prevailing interest lies. Many talks have gone beforehand as regards when one should spend or save. Some spend before giving consideration to save the leftover, while others prefer the opposite. Which is your choice of this two?
Whichever side you belong, your reasons for spending or saving finds you out, as either being wasteful or prudent; wise or foolish; ignorant or knowledgeable. A call to caution here is that you do not spend because you want to impress someone or appear to be in same class with someone else.
Let’s start with why we spend. Expenses are incurred for the procurement or provision of basic needs such as food, clothes and shelter. That’s the first order of needs. Moving on, our needs for association, class, prestige, etc, expose us to more spending, and this depends on individual’s taste or choice too.
Saving money for future projects is a good thing to do. But the advocates of spending would raise few reasons why they need not keep their money with a bank, which would use it for businesses, make profit and pay back a small proportion as interest.
Saving is not easily preferred when material acquisition has not been attended to. But what drive a good saving habit are many and few of them are itemized below: make provision for unforeseen circumstances, future projects, financial security, expected economic gains, etc.
One thing is certain with these two financial variables: what you spend, you cannot save; and that which you save, you cannot spend while the saving period lasts.
In as much the two serves their purposes, spending on money-making ventures are better than those which only take away money. If at all we must spend or save, let us do it with a sense of purpose.
Do not spend excessively for pleasure. I speak to the consciousness of the low-income earners. The high-income earners, too, would buy this idea, especially those who are adventurous in building wealth or increasing their financial fortunes.
In order words saving in form investments interest them. Investment in stocks, estate and other landed properties, business ownership, etc, are all forms of savings that can indeed make life secure for whoever take on them as means of survival.
And the question goes again, which pays more: spending or saving?