We’re often told not to sweat the small stuff. And sometimes, it’s the small stuff that makes life that much better. Grabbing coffee with a friend. Getting pampered with a mani-pedi. Going out on a double date with friends. Or meeting up for beers at the local watering hole.
But at the same time, we hear the refrain from personal finance types: Beware the latte effect! Skip the salon! Cook dinner at home! Just order water or turn friends down!
It gets confusing. On the one hand, I want to enjoy my life, and I think that, while there are plenty of things you can do for free, there’s lots of small stuff that does cost money (maybe $5, maybe $50). But I don’t like having to stress about every expense. Of course, all that money can add up. All the little things you spend money on throughout the week (a cup of coffee, a few lunches, a cab ride or two) can start to make a decent dent in your wallet.
So, how do you weigh what’s actually important? Or is it more important to cut out all spending when you’re in dire straights than it is once you’re on your feet and making decent money?
I sometimes feel guilty wanting to treat myself to something. “I could put the $10 for this meal towards paying off my student loans”. “Skipping the $4 ice cream sundae will probably help me lose weight and become a millionaire”. I mean, I know that if I put that $4 into a savings account that somehow has an unobtainable interest rate, and I let it grow for 500 years, it’ll be worth millions. But I also like going out for tasty crepes and hot fudge sundaes.
I go back and forth. Some days I spend with abandon. And by that I mean I go out for a few meals and buy a new dress. Other days I force myself to walk away from a coffee shop or bakery.
So, which side do you lean to? Saving every penny and aggressively saving and paying down debt? Or do you treat yourself (or others)? I’m wondering if it would help if I actually set a budget for “fun stuff” so that I’d know it’s okay to spend it. How do you find the perfect balance and not sweat the small stuff?