What You Do With the Money You Save Is Just As Important As How Much You Save.
Saving money is always good, right? If you can cut your spending or find a coupon for something you already buy, you will come out ahead. Unless you have a plan to save money.
As personal finance site Massive Debt to Mogul points out, cutting your spending is part of the budget equation that we’d like to focus on. Whether you’re skipping dining out or cutting down on your cable TV bill, you’re saving on your budget. However, we don’t often talk about what to do with the money you save. And that matters as much (if not more) than saving in the first place:
You can cut your expenses all day long, but what will you do with the extra cash flow? This is a more important question. If you are saving on costs but never investing extra money, you are missing out on a great opportunity.
The obvious answer to this question is, “Okay, keep it,” but even that deserves some thought. Do you keep them in an interest bearing account? How much are you going to save on your bank account before you start investing?
Another aspect to consider is that if you just “save” money by not spending it on one thing and then spend it on something else, you are not really doing yourself any favors. Clipping coupons to cut your spending is great, but if you work five hours a week to save $ 10 on your grocery bill, but then you close it by blowing it off at McDonald’s because you don’t have time to cook after all those coupons , you have spent a lot of time and effort to achieve almost nothing.
Rethinking frugality – when is it too much? | Huge debt to Mobul through Rockstar Finance