Saving vs. spending is one of the biggest problems we face when it comes to payday. We all know saving for our future and retirement is the sensible option, but at the same time, booking that flight to your dream location is all too easy. The struggle is real between these two options, so today we are diving deep into planning for the future vs. living in the moment and spending every penny we have. You’ll be surprised to learn it doesn’t have to be all or nothing, and finding the balance can relieve you of so much stress when it comes to your personal finances.
Why Planning for the Future Matters
Planning for the future may sound incredibly boring, but the peace of mind that comes with a financial plan and a savings pot will make your life a million times easier. By creating a plan, it’s much easier and more achievable to reach your big milestone goals like buying your first home, creating an emergency fund, or even starting to save for retirement.
If your financial situation is something that creates worry in your life, spending the time and effort putting money aside can help reduce stress, make you feel secure, and set you up for unexpected bills in the future. By doing this, your future self will thank you—even if you don’t feel great about putting the money away at the start.
Mini-Tip Box:
Start with small goals:
Even putting away £10–£20 a week can grow over time and give you confidence.
Why Living in the Moment is Important Too
Putting your money towards living in the moment isn’t a waste of your hard-earned cash. Spending money on activities like travel, spontaneous plans, dinner with friends, and hobbies are what create joy and happiness in life and create memories for years to come. Spending your money living creates meaningful relationships with those who you share experiences with and can even be a great way to form friendships.
Life isn’t just about working and saving your money but also about living your life too. You don’t need to feel guilty about what you decide to spend your money on. Living means you are allowed to treat yourself guilt-free.
Mini-Tip Box:
Try “fun funds”:
Set aside a small percentage of your income (like 5–10%) just for fun and experiences.
Finding Your Personal Balance
Finding a balance between the two extremes of saving every penny vs. blowing all your money the day you get paid is possible. The perfect balance looks different for everyone and can change throughout the seasons of your life depending on what you want to prioritize at that time.
Reflect on your values to discover what brings you joy vs. what your future needs. When you know what you want to achieve in your life, you can start creating a financial plan to achieve it. Create a list of all your financial goals including house deposits, holidays, expensive items like bags or watches, and add the amounts you need to save up for these next to it. Once you can see where you want to spend your money, you can start working towards it. The key is to be very intentional with your spending/saving habits.
Use these journal prompts to help understand how you feel about money and finance:
- Do I feel anxious when I spend money?
- Am I putting off life for “someday”?
- Do I have a plan I feel good about?
Practical Tips to Balance Both
Creating a budget isn’t about living a life with strict spending and no enjoyment. It’s about making your money work for you and what you want to get out of life.
Budget with balance:
Use the 50/30/20 rule:
- 50% needs
- 30% wants
- 20% savings
(Adjust as needed to fit your life)
Automate savings:
Set it and forget it. Put a little aside each month before you see it.
Create a “guilt-free” spending plan:
Choose things you love (like travel or dining out) and budget for them in advance.
Track your spending for awareness, not shame:
It’s not about being strict—it’s about making empowered choices. There are great apps that can show you easily how much you’re spending.
Treat yourself with intention:
Instead of impulse buys, plan rewards you’ll really enjoy and remember.
You can be both smart with your money and enjoy your life without feeling restricted. You don’t need to choose one side or the other to be able to do everything you want. Money is just a tool. You can use it to build a life that feels both financially secure and joyful at the same time.