Why You Shouldn't Try to Save Money by Eliminating All Your 'Fun' Spending
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Saving money is an unquestionably tough thing. And that may explain why 63% of Americans couldn't cover a $500 emergency expense by tapping their savings, according to data from SecureSave.But the reality is that you need savings to protect yourself from unplanned bills. If you were to lose your job or run into a major car repair, in the absence of savings, you'd likely have to fall back on credit card debt. That could cost you a boatload of money in interest and make your financial situation even more stressful.If you're without savings now or your savings need a sizable boost, you may be thinking about eliminating fun spending from your budget. After all, if you never spend money on anything non-essential, you've got to be able to free up some cash for savings, right?It's a good idea in theory. But here's why it might sorely backfire on you.When your approach to saving money isn't sustainableSaving money is something you should be doing consistently, year after year. So it's important to find a system that works for you. And cutting all fun expenses out of your budget isn't a great one.Sure, you could deny yourself every enjoyable thing your money buys you, from takeout meals to store-bought coffee to concert tickets. But what kind of way to live is that? And how motivated are you apt to be to keep working hard if none of your money is being used to improve your quality of life?That's why cutting all fun spending from your budget isn't a great approach to saving in general. Sure, it's something you can do on a temporary basis. People implement no-spend weekends, weeks, or even months all the time. And if you want to give your savings a quick boost, then go ahead and tell yourself you won't spend money on anything other than basic bills for the next 30 days. After all, there's a light at the end of that particular tunnel.But denying yourself fun purchases on a long-term basis just isn't a wise bet. Not only might you make yourself miserable, but you may be more likely to just give up on building savings altogether.Aim for a good balance and boost your income with extra workIt's not really reasonable to never spend money on anything fun. But that doesn't mean there's no middle ground between your level of leisure spending today and spending $0 on fun stuff.Maybe you currently spend $300 a month on streaming services, weekly dinners with your work friends, and other subscriptions. If you were to cut that figure in half, you'd still get to enjoy some fun purchases, but your savings would also grow. That sounds like a win.Another option is to look for gig work and send the extra income into savings (though if you're paid on a freelance basis, you'll need to reserve some of your earnings for taxes). If you go this route, you may not need to cut back on fun spending at all.Of course, you may already work pretty long hours and don't want to give up more time. But working a side hustle can be temporary. If you're able to earn $100 a week from a second gig, after a year, you'll be more than $5,000 richer. From there, you may be able to quit the gig economy for good and focus strictly on your main job.Giving up every single fun purchase is not an okay way to live. So don't do that to yourself on an extended basis. Instead, figure out how to strike a balance and look to the gig economy for an income boost so you're not constantly saying no to conveniences and social plans that truly bring you joy.Alert: highest cash back card we've seen now has 0% intro APR until 2025
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