A big question that most people have when it comes to personal finances is related to the balance between spending money and saving money. In other words, many still don't know very well when to do one or the other, nor how to do both at the same time!

Because we know that it is very difficult nowadays to resist the consumerist impulses to spend money without thinking about the future. But there are also those who are unable to enjoy leisure and entertainment because they think they need to save money at all costs, all the time.

But not quite! It is quite possible to achieve a healthy balance between the two, improving the entire management of your finances. So, if you also suffer from these doubts about spending and saving money, worry no more!

So, just continue reading and check out all the information we’ve brought you about this! It will be much easier to understand when it is necessary to save money and when it is possible to spend money.

So, stay with us and find out more! Let's go?

We save money when we can make a financial reserve. In other words, when we take a part of our monthly income and save it in some way, whether in savings, investment funds, fixed income investment assets, etc.

Therefore, we always say here at Senhor Panda how important it is to plan financially to be able to save money and create an emergency financial reserve. 

But it is also possible to save money thinking about investing, or even about a long and medium-term expense that you really want to make. In other words, saving money means saving part of your income, planning for it every month with a goal.

However, there are those who end up getting carried away when planning how they are going to save their money, and even those who are addicted to saving. Thus, what was supposed to be positive ends up becoming an unhealthy habit.

Because people don't live just by saving money, right? So, how about we understand a little more about what it means to spend money? But are they opposite things?

Let's find out next!

Basically, a time to spend money is when you are using your monthly income to consume services or products that are not essential. In other words, after you pay off your debts, bills and other essential expenses such as food, education, health, etc.

So, when you have already met all your essential needs but are still using your income, you are spending extra money. Thus, spending money is that moment of pleasure in acquiring something new, a leisure activity, an everyday pleasure.

But of course it's impossible to live without spending on these things, right? Because we all know that there is no way to spend your life just saving and spending money on the essentials.

The problem begins when the act of spending money becomes automatic and without thinking. So, for example, if you start to harm your monthly budget with your extra expenses, you are already taking the act of spending to a level that is no longer healthy for you.

Now that we've talked a little about what the act of spending money and saving money essentially is, comes the main question: are they the same thing, or opposites? Well, basically, they are things that connect.

But they are neither the same thing nor essentially opposite. Because you can do both things at the same time, in a balanced way and without excesses. For example, don't become such a rigid saver that you stop enjoying the good and pleasurable things that only by spending money can we acquire.

A trip, new clothes, dinner at a new restaurant. All of this is part of our daily lives and the small pleasures in life. But you can't go wrong with excess, right?

So, not so much spending and not so much saving, but both in an efficient and planned way. In other words, don't become too tight-fisted or too open-handed, you know? Because it takes a dose of pleasure and responsibility, in equal measure.

So, when you spend, do so with awareness of when it won't be harmful to your finances. Furthermore, be aware of when you are exaggerating so much in spending cuts to save money that you no longer enjoy the things you liked to do and buy before.

But if this balance is still complex to understand in practice, don’t worry. So let's talk in detail about when you should spend money and when to save it, so that it becomes simpler to understand.

So, stay with us and find out!

Here at Senhor Panda we like to talk about how important it is to invest in your own financial education. This way, you have control of your budget and start making better decisions regarding your money.

So, the way you spend your monthly income is also directly affected by your organization and financial planning. In other words, your financial education influences your spending habits, and how they evolve over time.

So it is! We change, and so do our habits when spending money. So, let's understand when and how we should think about our expenses to manage money in the best way, without falling into debt or becoming negative, right?

When thinking about spending, keep in mind what your priorities are at the moment. Because, sometimes, that t-shirt promotion is really good, but your priority is to spend on car repairs.

Basically, focus your attention, energy, and spending on what's most important at the moment. But I'm not talking about essential expenses, but rather those that, after the essentials, are the priority.

So, in the example we gave, it may be that the person needs new t-shirts, but the car working properly is a bigger priority for them. Did you understand? Therefore, we recommend that you take a moment to organize your priorities whenever you realize that you are spending too much.

Notice how often you spend on the same things, and what the value is. This way, you will understand when it is time to cut certain expenses and start to control your money better.

Lastly, spend your money with financial control. In other words, you can spend money in an organized and controlled manner, enjoying experiences and leisure, shopping, etc., but without losing track and accumulating dangerous debts.

Ok, we now understand when and how to spend money efficiently and healthily. But what about when to save it? So keep reading and find out more.

For those who like to spend, it is essential that they also take responsibility for managing the way they save money well. Well, it's no use just controlling your expenses, you need to have a good understanding of when to save too.

But how? Well, basically financial education will help you with this, through good planning. This way you can understand yourself, know what your spending profile is, how much comes in and how much goes out.

So, set goals for your savings, goals for the money you are saving. Is it just an emergency fund, or is it to buy a car, pay for university? And so on.

Because when saving money becomes something that makes sense to us, because it has a specific purpose, it becomes easier and even more pleasurable to start saving. Furthermore, always think about the future, about your future self.

So where do you see yourself in 20 or 30 years? It may seem silly, but you need to be careful to think about your future situation, which directly depends on your decisions now in relation to your money.

So, think about all this, make good financial planning for your present, understanding how to save money for your future. It may seem complex, but it's not! And you can be sure that you will be grateful later on. 

As we said, saving money and spending money are not opposites or the same. But both depend on your financial education and dedication to yourself! In other words, you need to reflect and better understand your relationship with money.

Only then will it be possible to strike a balance between spending and savings. So, learn about your financial reality, review the way you spend money, but also don't create excessive anxiety about the need to save money.

In other words, have control over your budget, have clear limits for your expenses, create goals and know how to prioritize your money. This way, you will be able to adjust your household budget, while balancing your expenses and savings every month.

So, managing your finances through this type of planning will increasingly become a habit in your daily life. So, don't give up, dedicate yourself to yourself and your money routine, and you will reap the rewards in your day-to-day life and also in the future!

But remember: financial education is the key to finding this balance, without it, it is very difficult to understand your relationship with money. So, don't delay and start investing in yourself and your knowledge about finances today.

So, check out our content here on the Senhor Panda portal, because you will certainly find an article to help you with spending and saving money, right? So, we hope we helped and see you soon!