Savings are meant to be spent
Changing my relationship with savings
Okay, it has been a while since my last financial update. In my last post, I rounded up 2022, reflecting on my key financial takeaways. Since then I have neglected my monthly financial updates because, well, there was nothing to update.
Being unemployed, I took things slow. There was nothing significant to financially update apart from the far too often car repair, infrequent eating out and life critical subscriptions. I just couldn’t bring myself to cancel any of my six subscriptions.
My expenses totalled £1,737, with the bulk of that going to car maintenance. My savings took a hit in the gut, and my budget expectations were exceeded each month. That is what savings are for right? They cushion the blow as much as possible.
During the past months, I tried to balance my spending and social life the best I could. I didn’t want to cut myself off from social events entirely, but I also wanted to be mindful of my expenses. I reminded myself that my savings were there to be used. It was the reason why I saved; to not worry about money during unemployment.
To spend or to not to spend
There was a moment where I struggled with deciding to partake in an event a friend invited me to. I hadn’t seen them in months but It required me to spend an amount I wasn’t fully comfortable with. A part of me felt like it was frivolous spending, but another part of me reminded me what money should be used for.
Relying on my savings helped me reconcile my relationship with money. Not having an income, I initially felt very restricted and tight.
I had to realise my savings were a cushion and means for me to enjoy this time off work. Rather than seeing my savings as a precious finite resource that shouldn’t be touched, I concluded that the free time I had now was much more valuable than what was in my bank account.
I wanted to use my free time, something I would not have much of when re-entering the workforce. And so I spent my savings on the free time I had available, not intensively worrying about whether I was spending too much.
Prioritising the present
Spending money without certainty of a future income meant I was much more particular. I tended to prioritise experiences with those I care about. I welcomed opportunities to hang out with others, seeing moments as the most valuable form of currency.
If there was one thing I felt I could have done, it would be to travel. I was contesting whether to book a solo trip to Europe with a £300 budget. My frugal instincts prevented me to do so, especially since there was no promise of a future income.
I regret not doing so. In retrospect £300 is not expensive, relative to the memories made, it would have been worth it. Nevertheless, I hope to travel to Europe during the summer. The prospect of exploring new places, meeting new people, and discovering new cultures is something that fills me with enthusiasm.
Going forward I will be doing my financial recaps every three months. This will give me enough time to write more meaningful posts. My posts will do more than just give a breakdown of my budget targets, savings and investments. It will tell of the lessons learnt over the months, and any shifts in my mindset or approach to managing and growing money.
