Money tips to save cash without sacrificing everything you enjoy

Spending money on enjoyment should not be seen as wasting it, and a good mindset and plan can help you save at the same time.

Paridhi Jain, founder of SkilledSmart, says allow yourself to spend on things you love. Picture: Supplied

Much of the advice Australians hear about saving money is to stop spending on things that aren’t necessities, including entertainment, eating out, daily coffees, clothes, beauty and gadgets.

But what if you love that stuff? Not spending on enjoyment is bad for your mental health, and what is wealth worth if you cannot get any fun or fulfilment from it?

Money experts say there are ways to save money without sacrificing everything you enjoy.

Financial education company SkilledSmart’s founder, Paridhi Jain, says “give yourself permission to spend on things you love”.

“This sounds counterintuitive, but a lot of the time people who are living in a deprivation or scarcity mindset end up inadvertently spending more because part of them always feels restricted, unfulfilled, and therefore even angry and resentful,” she says.

“This can lead to cycles of underspending and then binge spending.”

BE CREATIVE

Jain says people who allow themselves to spend may find they no longer desire to, because their energy is no longer spent trying to stop themselves from doing something.

Get clarity on your own values, she says. “What’s important to you? Health? Family? Adventure?

“Compare your values with your current spending. What you’ll likely find is that there are a lot of areas where you spend money that aren’t aligned with your values. You can slowly start to reallocate your spending.”

Paridhi Jain says being creative can help build savings. Picture: Supplied

Being creative about spending on enjoyment can free up cash for savings, Jain says.

“For example, would local travel or weekend road-trips fill the same need for fun and adventure as going on international trips?” she says.

“Would joining a running group or hosting potluck dinners meet the same need for social connection, without having to spend a lot on brunch every weekend?”

Creativity also can help your recreational activities be self-sustaining financially, Jain says.

“I know people who love fitness and have taken up being a personal trainer in their spare time, or they love music and they casually teach classes on weekends, or they love baking so they cater for small events in their spare time,” she says.

“This allows them that little extra cash to spend money on their hobbies, guilt-free.”

SEEK BALANCE

Sort My Money founder David Rankin says saving without sacrificing everything fun in life is “about striking a balance”.

“It’s about deciding what really makes you happy,” he says.

“Convenience food is regarded as fun, but too much junk food would not make you feel happy. You might want to cut back on junk food – money forces you to assess priorities.”

Saving is simpler for those who make an effort to track what they spend, Rankin says, because they are likely to find costs they had forgotten about or mistakenly doubled up.

“I find that all the time,” he says. “I find a lot of double and surplus subscriptions, especially between family members and blended families – there’s a lot of waste.”

Rankin says take a step back to get on top of your spending, and be consistent.

“Set yourself up with a spending allowance for things like petrol, groceries and coffees and stick to it,” he says.

“Transfer the same amount on the same day each week into a dedicated spending account. Once you get that consistency, you will find savings start to happen.

“Flex your willpower muscle. Saving is to have a better future, not just an indulgent today.”

BEAT FINANCIAL GUILT

If you feel guilty about spending, you’re not alone.

New research by Finder.com.au suggests 57 per cent of Australians feel bad about spending money, especially on eating, drinking, splurging on clothes, shoes and beauty products.

Finder spokeswoman Sarah Megginson says guilt is usually the result of lack of planning, and it’s a good idea for reserve 10 per cent of your pay to spend on what you want.

“Some dollars go towards bills, others go towards goals, and there’s always a portion of each pay cheque that’s for splurging,” she says.

“When online shopping, try to add to cart and then leave the item for 24 hours, to give yourself time to decide if you really want it – or if you were just chasing a dopamine hit.”

Sort My Money’s Rankin says too much fun spending “can make people feel pretty down”.

“You know that you are robbing yourself of a better tomorrow,” he says. “We have a prefrontal cortex, we know about the future – unlike animals – and we can feel bad about it.”

Originally published as Money tips to save cash without sacrificing everything you enjoy