No one would ever suggest that being generous with your money is a bad thing, particularly when you talk about donating to charity or taking up a good cause for the sake of being helpful to those who don’t have money or the necessities such as food, water, clothing or shelter.
The negativity that surrounds being overly generous is more inward and topical, day to day spending, such as when you think about something such as always paying for everything when you’re going out with your friends or picking up the check without even thinking about it. Chances are, you’re doing this for two reasons: you have more money then your friends or you just want to be “that guy,” the one who picks up checks and is seen as being nice and wanted.
Sometimes those aren’t so good at saving money argue that they have plenty of income and get their bills paid but they aren’t being too smart or intelligent with the leftover money. That might mean you’re being overly generous to yourself, and spending that money rather than saving it or worse yet, you’re spending it on what you don’t need, such as dinner out a restaurants constantly or buying yourself something every time you get paid.
That last item is especially troublesome given that some financial experts will tell you that part of saving money and being successful at it starts with not depriving yourself of gifts. That message is heard loud and clear but as you can see is often misinterpreted by the masses who start spending freely and remind themselves as that so called rule. In actuality, buying yourself something really isn’t a bad thing, but that comment centers more on budgeting more so than anything else.
If you create a budget that works and is relevant, you can assess an expense and perhaps cut it in order to make room for something you enjoy, but that sentiment isn’t a full scale range to start pampering yourself at every twist or turn. Instead, think of it as a challenge to avoid being generous to yourself almost to a fault.
Wanting to be smart with money is what every person strives for, even the ones who have the expendable income and particularly the ones who stick close to expenses and income. But being smart requires you to focus on your financial future and not being so flippant with your funds, whether that means spending too much on yourself or others rather than sharing the wealth when the check comes.
Previous: Common Problems: You’re not the only one making money mistakes Next: Planning Stages: Why budgeting means more than just numbers