Most people prioritize to save their money to get ready for emergency situations, while others enjoy spending their money on the things that they enjoy to brighten their day. In my view, adopting a balanced approach by implementing some strategies of financial plan would be much more better.
One of the most advantages of saving money is being ready for the potential emergency situations. This means that while securing your part of your income for some specific purposes can be also incredibly useful for emergency situations. For instance, saving for emergencies ensures you with necessary funds in situations like car accidents which can lead to surgeries or even repairing a car itself. Moreover, saved income is beneficial for natural disasters. For instance, when facing earthquakes a person can feel confident about damages, which saved money can be used for temporary housing or possession repairings.
On the other hand spending money for the things that you like is kind of entertainment which reduces stress, assisting you to escape hustle and bustles. To be more specific, in our fast-paced world, where surrounded with responsibilities and pressures, using your money for entertainment purposes can provide a sense of relief and joy. For instance, travelling to new destinations, rewarding yourself with the meal you enjoy or just purchasing a product that brings you a happiness is a great way of recharging emotionally and mentally. Moreover, participating in activities you love like concerts, theatres or circuses is one of the best ways to escape your everyday problems. Finally, by investing to your personal pleasure is the only benefit to escape your lifetime issues.
However, those two actions can lead to over saving or over spending. Sometimes people over restrict themselves from spending money, intending to prepare themselves for the possible emergency situations, while others waste their income just wanting to escape daily problems. Therefore, there are some suggestions from business experts on how to calculate and spend salaries. For example, one of the most popular income calculation plan called 50/30/20 is commonly advised by successful individuals. That strategy stands for spending 50% of your profit on a daily or frequently faced needs such as apartment renting, foods for living or utilities like hygienic tools. Meanwhile other, 30 and 20 stands for the wants and saving, 30% of your income should be used for entertainment purposes like dining out, which doesn’t ignore your need to escape your everyday issues, while 20% of your budget should be accumulated to piggy banks, to be ready for future emergencies.
In conclusion, even though I don’t deny the actions of both groups who save their money or who spend their profit for entertainment purposes, I believe that in order to prevent over restricting or over spending your income, measures should be taken by using credible strategies suggested by experienced businessmen.