Why choose? Why not do both?

The fact is, we are constantly window shopping. One of the perils of being online is that advertisements are constantly chasing us. We get emails, pop-ups, or messages that tempt or coax us into buying something. We may or may not necessarily need it, but eventually, our resolve melts and we all fall prey to the advertisement. And that’s exactly what its objective is—to wear you down into buying. There is nothing wrong with shopping, but it cannot be done at the cost of your future. So, either we go offline or we become disciplined in our buying habits. Going offline is not really an option, so that leaves us with the tougher option of controlling our shopping habits. Easier said than done, but if we follow some basic steps, we will be able to achieve it.

  1. Change the equation from Income-Spending =Saving to Income-Spending = Spending.
  2. For all the stay-at-home men and women, keep a small amount aside as a payment for yourself.
  3. Follow a simple formula of 50-30-20. Spend
    1. 50% of your income on needs
    1. 30% of your income on wants
    1. 20% of your income to be saved
  4. Change your outlook on savings. Savings is not a sacrifice; it is an investment in your future. Look at the larger picture. This savings will help you achieve your future aspirations and dreams.
  5. Invest the saved amount. Do not let it sit idle in your bank account. The best way to ensure this is to automate the investments. Every month, the saved amount gets debited from your account. Two additional benefits of this automation are disciplined and consistent investing and no unnecessary purchases.
  6. Give a purpose to your investment amounts. What are you investing in it for? This will motivate you to continue with your investment; it may also encourage you to increase the amounts, thereby saving more.
  7. Put timelines against each goal (purpose), so the goals are visible and you can see yourself reaching closer to the goal.
  8. You can take a break once or twice a year during the festival sales to buy whatever you wish for; that way, you get it cheaper too (more savings) and satisfy your shopping desires too.
  9. Choose cards, coupons, or vouchers that give good discount offers, reward points, or zero percent EMI.
  10. Once you have achieved one goal, you can add another one and continue your saving and investing journey.

One of the biggest roadblocks we will face in this process is our belief system. Most of us believe that saving means sacrificing or compromising our lives. When you have people around you constantly buying and showing off on social media, it will be difficult to resist. The temptation to follow will be very compelling. You are likely to hate and complain about having to save and not give in the entire time. At that time, ask yourself: Do you need this right now? Can it wait? How will I pay for it? Where will I put it? Our cupboards are overflowing with clothes, bags, shoes, etc. Do you need to add to it at this point? The choices you make today regarding money and the choice to delay the buying decision are what will help you achieve your goals. You don’t need to buy or consume everything that is pushed in your face; at that point, you can choose to save.

The key is balance.