How To Find The Perfect Financial Balance Between Saving & Living
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- čas přidán 2. 06. 2024
- In our new series, Investing In Yourself, Chelsea walks you through the basics of getting your money under control so you can reach your long-term goals. In our last episode, she tells you everything you need to know to balance saving money and living the life you want.
Written by Amanda Holden
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1.) Believe that both saving and spending are important.
2.) Write down your life/savings goals and give them a price/cost.
3.) Build a budget with these goals in mind.
4.) Proactively manage your debt.
5.) Learn to cherish the things you already own.
6.) Free hobbies.
7.) Automate your money.
thanks!
Thank you
MVP ❤️
Thank you...
I got so focused on saving that I didn't buy new clothes for a couple years and even when half of it wore out and I suddenly couldn't fit any of my pants, I still felt bad for spending on new clothes. I was like dang, shopping used to be fun, what happened!
Once you get the hang of shopping again, that will be no problem anymore, trust me😂
I only buy what I need. Now that I am working from home I dont really need new clothes. Most of the time I am working on my pjs lol.
The 50/30/20 budget looks nice on paper, but I've found that only saving 20% doesn't allow me to reach my financial goals because I have a low income. Living simply has helped. Still looking for extra work to increase that income so I could have some fun. I like how you mentioned the importance of setting goals and approximate costs. It is easier to save for your future self when you know what it is all for. This is a great series!
These are guidelines, and can (and should!) be adapted to your personal situation and preferences. I can spend some more, have to worry very little about losing my job (yay for European employment laws), and have less costs for healthcare or even housing, so I can probably cut back a little on saving, but I keep saving because it's an important habit to have. The important part is finding a balance, where both saving and spending have their place.
You can use some apps from your phone to help you know exactly what your goal is and how much you should spent each month and to create a budget if you really need to. That helps me a lot. I live in México and the prices here are different than the USA, but thats what works from me. I know exactly how much money I have and that prevents me from purchasing things I dont really need.
@@dianasoto5309 I also live in Mexico (CDMX). I've never tried using apps to determine how much I spend. It is an interesting idea, but I think it changes so much depending on where you live and work.
@@ChristopherJohnsonArtist yeah I totally understand. I lived in the USA for 19 years, so I know the difference of each country. Usually the apps have most of the currency around the World. So you can modified it to be in Mexican pesos insted of USD. But what works for you, may not to other people. I wish you luck!!
@@dianasoto5309 Thank you. likewise. So far what has worked for me is setting a high savings % goal and spending as little as possible on rent and transportation (roommates, no car, almost no entertainment expense, etc.) A very simple way to keep track of your progress is by making a Google spreadsheet and adding a new entry for each month. I could use some tips for reducing food costs.
My grandmother spent 10 years in Siberia after the II World War where she saw her brothers and sisters die for a piece of bread. I can see how some of the behaviours I've seen her demonstrate through life are creeping into my life. I always want to save as much money as possible. And I've also noticed that when I buy something nice for someone else I don't feel guilty, but when it's for me I think about it for days. Thank you for these great reminders.
That's how I feel too, buyer's remorse for me has been something I've been struggling with. I recently bought myself a bottle of perfume and a month later I'm still thinking about it and feeling like I wasted that money.
I suppose we need to learn to take care of ourselves more.
@@lindalove I hear you. I'm the same..
@@IEVAKambarovaite i feel that. I also started the "shady bragging" thing when i got something second hand cheapter that a friend who bought it new. I HATE when my dad does that, but here I am. My dad grow up super poor and still is, my mum was kind of okay but allways felt incredible poor - so a lot of baggage about that topic.
"balance between present and future self" is what I will take from this video :)
Thank you, I really needed this! I'm so used to saving money that when I spend a little on myself I feel guilty. I need a better balance!
I agree most people don’t know how much their dreams actually cost. Everything can be calculated people! I realised I needed a lot less than I thought I needed once I calculated them. It def reduces stress
Omg Chelsea, you have saved mee. Just a few days ago I was thinking of buying fall related candles cuz it was such a cool thing to do, everyone else was doing it. But then I heard ur voice saying you don’t have to buy something just for the aesthetic, its OK to not buy what u can’t afford. Thank you 😭❤️
Okay, but that adorable cabin in the forest is all I've ever wanted.
I wonder how much easier it would be to save money if we didn't have social media? Watching the picture perfect lives of influencers ramps up FOMO and makes it a big mental game.
Setting a goal on Goodreads to read 100 books in 2020 MADE ME finally use my local library's ebook/audiobook selection on Libby. I've not only saved a ton of money on books (I no longer have a book budget) but I also shop far less than I did before.
I’m always wavering between spending too much and saving too little or saving a lot but not leaving my apartment for days even weeks on end. I almost get anxious when I spend too much even though I’m enjoying the company I’m with and the activities I’m doing. I’m hoping I get better at this 😖
There are so many free outside activities (or just cost transportation!). I love driving to new neighborhoods to walk here in Chicago.
Hey! I resemble that person in the tiny house living almost in isolation, although my tiny house and gardens are in a city. I have found the lower-cost of living and actually owning property has allowed me to invest in lots of causes and people that I could never have before. Although my personal savings could be greater. You are definitely great inspiration and I continue to learn something with each video. Thank you for what you do.
I like that approach think of your budget as a game
Love Point #2!! Get price tags for dreams and goals! Such a great point so that you can reach dreams, but know what you'll have to actually need to attain them.
Only spend on that which you truly value. Doing anything other than that just brings you down.
Nice content! The best way to find that balance between saving and living is by investing, This way you get to have your saving intact and then live comfortably off the revenue coming in from your investments.
wow! this is a jewel. probably the best comment i've ever come across on YT. Why didn't i ever think about this. Thanks for this Maria, I'd also really appreciate if you give me some tips/guidelines that would guide me on the right path to take while investing.
I don't think I'm in a position to guide you, You just got to find the best investment and find a strategy that works for you or better still find yourself an investment adviser who'd help you trade and control your portfolio, with their knowledge and experience you could earn some good revenue.
This sounds more like putting your savings in an investment company rather then the bank, hmm really ideal i think because you'd earn a better revenue than the annual interest value you could get while saving in the bank. WOW! this is really an eye opener, could you recommend an IA please? I would really appreciate that. Thanks so much for this. ITS GOLDEN!
@@ahava1126 Thanks so much, You're an absolute blessing. Really excited to start working with her.
@@amirabdallah4751 Actually it’s necessary to reinvest your revenues to accomplish any major saving in life like for retirement or a house.
I’m a pretty good saver but still feel guilty when I do feel like spending 😭
- You can't be the rich kid of instagram
Me : crying cat face
Does she have a tan? Go you Chels
Btw this channel has taught me ALOT of what I know about finances. Thank you. -a grateful 23 year old
I’m not hiding from my debts. I just can’t seem to stop shopping! I have paid of my credit cards several times in my life, but as soon as I do, i feel like the feeling of having NO DEBT causes me anxiety and I need to buy something expensive so I can work toward paying it off again. It’s a real problem.
Maybe you just need to always have some kind of goal. When your debt is paid off, you can shift your focus to a savings goal. Then you still have something to work toward, but it's for positive money instead of negative money.
My budget ended up being:
65% bills
5% fun money
30% savings
It helps to have each goal in a separate account, as well automating the percentages through my work’s direct deposit.
#5 Love it! Cherishing what you own multiplies gratefulness. Another great share!
This channel has seriously changed how I see money and debt. As someone who has struggled with these concepts resulting is serious mental health issues I am incredibly grateful y'all have taken the time to break things down and encourage all persons with various financial backgrounds. THANK YOU!
Such an important balance to do what makes us happy but still keeps us out of financial stress. Great tips!
This is such an important topic. I really believe balance is so important
Thank you 🙏
This helped me feel a lot better about the financial decisions my partner and I have had to make in 2020.
Saving at a painful cost or not saving at all could both be a problem!! Great advice!! Finding a good balance does seem to certainly be helpful to a prosperous financial future!!📈
Very good Chelsea. People spend on many small items leaving nothing for what they really want. It is wonderful to have money saved for those wants that you thought you'd never have.
Such good advice, as always! Thank you!
Thank you for this video, really needed it ❤️❤️❤️❤️🙏🏾
Budgeting 'Instant and long term gratification' it's a great way to put it. Also if possible when Increasing your income but not your lifestyle helped me massively getting me out of emergency situations
I already practice step two because creating small and big goals are my favorite things to do in my life. Also enriching my mind with free hobbies is much more rewarding than buying my hobbies.
Excellent video, Chelsea - thanks!
Balance is so important along with avoiding lifestyle creep. ✨
This video is worth watching! More of this, please!
This was super helpful, wow!
Exactly the balance I am currently striving for, thank you! What do you do about goals that are “maybes” when life is uncertain e.g, how long until I’ll be ready to buy a house?
Love your videos! Would you ever do one about how to combine finances with a spouse?
15k dollars wedding?!! Wow, that seems still a huge amount of money for a one time event, even your wedding. Mine was more like 4k (euros) including everything, and it was perfectly good. I tried to put the money towards having an interesting venue and great food. I saved on the frills (eg flowers, my wedding dress) and I have no regrets.
It would be better if you added English subtitles😊
To my mind,this is a useful video for everyone. We should find that average between saving and spending. It will definitely help us to control our finances and both spend and save correctly
What do you suggest about future goals that could have wildly different price tags depending on which path you take to get there? For example, I know that I want to adopt, and I have had people tell me it cost them anywhere between “the gas money to drive back and forth to the court building” and upwards of $40,000.
needed this so bad. I save too much but don't take time to enjoy things.
Hey Chelsea! I'm wondering if you can do a video on finances during school. I am currently in medical school, so that means no job income, but a very big line of credit, and the dual promises of extreme debt and vastly increased income in a few years. A lot of the advice I find seems to assume a steady-ish income ... I just don't really know if, for example, it makes sense to start investing now if I'll have giant student loans to start paying in a couple years.
I needed to hear this. 😩
Very good topic. I really struggle with guilt when I buy something, because I dont NEED it to survive.
Was anyone able to partake in The Big Reset summit? How was it for you? 🤗
This may be very niche but can you make a video on living abroad and how to manage bank accounts and spending. Especially since you’ve lived abroad.
Sorry to detract but where did you get that grow light from? It looks phenomenal
It's difficult to achieve a balance, as it's a moving target in our lives. Sometimes, we spend more because we renovate the flat, sometimes we save more because we don't feel like buying new stuff/going out. I don't believe in any % approach which should go towards our pleasures or savings month after month, as long as we realise our long term goals it works for me.
It would be awesome if you would go over debt solutions. Maybe work with one of the agencies out there. I worked with consumer credit if minnesota. They helped me create a budget and work with my creditors and get my debt under control. I was able through them to lower all my interest rates, when talking with my creditors myself they refused. I was afraid for a long time to use a service like that because so many seem shady but taking that step got me out of debt years faster than I would have and in control of my finances. It would be good to have more information out there about agencies like this that can help that are trustworthy.
My husband and I could not save for a long time. But as soon as we got in that position we started.
The video I needed now that I paid off my debt and have all this extra $$
And thank you TFD for getting me to this point!
If you have an emergency fund already, open a Roth IRA as your next step. I got really anxious after paying all my debt and was afraid I was going to overspend, so ended up feeling guilty about spending anything. As Chelsea mentioned creating money goals is a must. Opening a Roth was advice from a friend and it was so helpful! Congrats and good luck on your financial journey~
Any advise for "saving fatigue"? The only goal I'm saving for is a home, and I save 30% of my income to put toward that goal. Unfortunately at my current rate it'll take a little over thirty years to reach my goal! Sometimes it feels like a waste to save money for such a far-off/intangible goal.
Maybe make some short term fun money goals that take 1-2% of that savings and put it towards a vacation, upgrading a piece of furniture, buying personal training for the year, investing in a hobby (buying a fancy camera) if you would use it, etc
This is me now saving for grad school. The difference between the account number and price tag feels massive, but I keep telling myself to save away. The thing that’s helped me the most are my monthly Money Dates. I automate my savings and don’t think about the amount except for one day a month after both paychecks have hit. It’s been incredibly helpful cause I see the number go up at higher amounts. I also think I got the idea from this channel if I remember correctly 🤔
You could go for a more affordable home in a lower cost of living area. One thing I've been doing is figuring out in a spreadsheet how many square meters I could build with my current savings.
I feel the exact same way! I've been saving for 7 years and I'm TIRED.
*I’m the OVER saver* 😩
Can you talk about methods for saving for freelancers? I don’t have a fixed income month to month, sometimes I earn zero, other time I get a payment for four months work. Also I have no way of predicting what next year is going to look like (not even when there ISN’T a pandemic). Cheers!
when u don’t have anything to save 😂
and when 95% of your income goes to essentials 😂
I'm looking at all my debt which are student loans and I'm not sure if consolidating it to one loan is more beneficial than making it over a 10yr period of time with different interest rates, any advice on consolidation of student loans?
Most say consolidate but I think not. I would small ball those student loans and see them each quickly disappear.😍😁💝
Is retirement savings part of the 20%? I thought I was supposed to put 20% to retirement and then need other savings accounts for my emergency fund, my next car, botox - the essentials. I live in Los Angeles (hence the botox) so my mortgage is 50% of my income. So the fun 30% is only 25% and it goes to food, utilities, insurances, and the vet (my pup is 16 and very expensive). The rest is savings. We have fun only if the dog decides not to fall off the bed to hurt herself or other such adventures.
The best way to find that balance between saving and living is by investing, This way you get
to have your saving intact and then live comfortably off the revenue coming in from
your investments. Financial freedom is possible, you just need to know
what to do and when to begin. I am a living testimony.
Yes you are right on this issue. Now is the "BEST TIME TO INVEST", now that the price of
purchase is down and will go high soon enough. Anyway regarding the question on
what you should do, I will say get the services of a reputable financial manager.
It's amazing to see other people who have also invested with Suzanne Stephens Ellis.
I thought I was the only one she is assisting through this rough market.
I feel like I'm either really focused on my goals and paying off debt, or I spend too frivolously on junk that doesn't matter in the long run. I'm my worst critic and a self-enabler, it's frustrating. My bills never go unpaid, but I'm $1000 from paying off student loans I racked up while not finishing any degree, I have about $700 in revolving credit card debt that I quite frankly just need to cut up because it's detrimental to my goals. So for me, I spend too much and pay for it later, and my future self deserves better than that. Ugh, send help.
My 401k at work only matches 1.5 percent. Would I be better off moving the few thousand I have in my 401k into something else like an ira? I dont know anything about this stuff! Lol
To create balance with your money, you need to determine how much is appropriate to spend now to live your life fully. At the same time, you need to know how much you'll realistically need to save for the long-term. You want to make sure you can enjoy a secure financial future and not run out of money.
Very useful advice for money millennials🙏❤️selfhelpchampion
Oooo girl, nice tan
i subconsciously do not find the inherent value in saving; need some serious work on that
You look more tan in this light and setting
I get your point about budgeting out a cost of having children but honestly if more people did that, they’d never have kids 🤨🤪this is likely another reason why people are choosing not to procreate 🤷♀️ as the #s are going down down down 😔
6:50 Is she implying that she struggles to go a month without buying clothes? Is that a normal thing for people? I can think of a single pair of pants that I've bought in the last 3 months.
I don't think I'll ever understand people who like buying clothes.
first
Powder
Why are you orange?
Kindness is free
@@emu9520 my question stands. I didn't say anything negative about her, it was a question about lighting or saturation. Get over your feelings.
@@wick3dwords regardless of your thought behind it, the comment comes across unkind
@@lizlemonwantsitall And you both come across as incredibly oversensitive, which isn't my problem. Cheers! :)
Why do you look like a duck? 🤔
That hair color looks ragged on her. The darker is much more posh for her.
Chelcie usually wears nice tops, why do I hate this one