Why I’m Going to Stop Saving Money

photo: Khalid Al-khater

In a recent post, I wrote that the nomadic lifestyle is one of production and creativity. I’ve been thinking about this, and I’d like to give these qualities a higher priority in my life. Towards this end, one of the things I’ve decided to do is to stop saving money.

What will this look like

When I say I’m going to stop saving money, I don’t mean I’m going to stop putting money into my savings account or that I’m going to spend recklessly. Here are some of the specific things I’m not going to do:

• Open a menu and immediately look at prices
• Walk back and forth between shops doing price comparisons
• Bicker with my husband about minor purchases
• Opt for one product over another just because I have a coupon
• Waste time or energy to avoid paying small “convenience fees”

Many of the things on the list add stress and negative energy to my life, and they waste time. I don’t enjoy doing them, so I’ve decided to stop. From now on, I’m not going to be actively looking for ways to save money in my daily life.

What will happen if I stop saving money?

Will my spending habits change if I stop making a conscious effort to save money? Will I suddenly start spending hundreds of dollars I can’t afford? I seriously doubt it. My lifestyle is simple, and most of the things I enjoy don’t cost any money.

• I don’t own a car.
• I don’t have credit card debt.
• I rarely go to the movies.
• I don’t buy meat.
• I don’t buy junk food or ready-made meals.

Steve Olson wrote an interesting post about saving and making money. He says:

“We all want more money for one reason… It gives us freedom to pursue our goals, to travel, to grow, and to create the life of our dreams.

If you focus all your attention and energy on saving money, you aren’t focusing on the solution. You are focusing on the problem. The solution is creating wealth. To create wealth, you need income and you need to grow it. So if you’re focused on coupons and light bulbs you aren’t focused on the long term. You’re focused on a band-aid fix.”

Steve’s point about the band-aid fix really resonates with me. Since I don’t earn a lot of money in the first place, focusing on saving what I do have isn’t going to drastically transform my financial situation. Instead, I’d like to invite financial wealth and abundance into my life.

If I don’t try to save money, how will I make financial decisions?

photo: zenonline

From now on, I’m going to practice what I call value-driven spending. With value-driven spending, there are only two points to consider when making a financial decision.

1. If something doesn’t add value to my life, I won’t buy it.
2. If I think the item is poor value for the money, I won’t buy it.

But what happens if I want to buy something that is good value in every way, but I literally can’t afford it? Won’t I go into debt? Nope–because I plan on continuing to follow this key guideline:

Don’t spend money you don’t have.

I use credit cards and debit cards all the time, but I rarely purchase things without having the cash sitting my account. In the past, the only exceptions have been large-ticket or time-sensitive items. For example, about six months ago I paid $2500 for a visa application so that I could remain in Australia with my husband. We were living very close to our means at the time and had no savings, but were confident that we’d be able to pay off the credit card balance within a month or so. Since then, we’ve built up our savings, so I don’t anticipate having to use a credit card again in that way.

If you currently have a lot of credit card debt, then all the money you’re spending is money you don’t have. That’s a tough spot to be in. My advice is to set up a monthly automatic transfer to your credit card balance, and pay yourself a fair living wage out of what’s left over. When you run out of money that month, don’t use your credit card. Every time you’re tempted to do so, ask yourself, “Am I willing to postpone my financial freedom by X days/months in order to possess this item?”

The joy of making money

I have to admit, saving money does feel good occasionally. However, the feeling is short-lived. Most importantly, saving comes to a natural end. Once I’ve cut all the corners I can, there’s no forward movement. It’s like setting up a line of dominoes and knocking them down. Once the last domino hits the ground, it’s over.

By contrast, making money generates greater positive emotion, and the emotion itself is much longer-lived. Making even a small amount of money motivates me to make more, especially when I’m trying out a new income stream. Unlike saving money, there’s no limit to the amount of money a person can make. You never get to a point where you think, “Well, that’s it–I can’t possibly make any more money.” Making money is like an infinite line of dominos.

My predictions

Here’s what I think will happen if I stop focusing on saving:

• I’ll be able to direct the energy that I previously put into saving towards making money instead
• My decisions won’t be driven by financial concerns
• I’ll be able to follow my dreams and achieve my full potential more easily
• I’ll become more relaxed and cheerful
• I’ll have the means to help those who need money
• I’ll be able to support others in their quest for financial independence

I’m sure there will be other results that I can’t even predict right now. I’m excited about this shift in mindset and I’m open to the possibilities. Whatever happens, it will be interesting to experience the results. I’ll document our journey along the way. Hopefully, we won’t end up in a cardboard box on the side of the road.

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