Money has a way of testing balance. Lean too far toward penny-pinching and life feels tight and restricted. Tip the other way into carefree spending and it’s easy to lose financial footing. Here are some practical tips to help find a healthy balance.

Two lenses for seeing money

Most of us have a mix of both frugality and spendthrift habits, but knowing what each one looks like makes it easier to spot where they show up in spending habits.

• Frugality is about being intentional with your money. A frugal person budgets, prioritizes spending on what matters, and looks for ways to stretch a dollar without sacrificing value.
• A spendthrift, on the other hand, tends to spend freely, often without a plan. This can lead to splurging or buying on impulse, or prioritizing short-term enjoyment over long-term financial stability.
  
  

Counterpoint to frugality: Why it’s ok to spend money

Being frugal doesn’t mean you never spend. In fact, spending wisely within a budget is part of living well. It keeps life balanced, enjoyable, and sustainable. Here’s why:

• Budgeting allows for enjoyment. A budget isn’t just about bills and savings. It should also include money to freely spend, whether it’s for dining out, hobbies, or travel. Planning for enjoyment makes it guilt-free.
• Quality can save money in the long run. Sometimes spending more upfront, such as on a durable appliance, a reliable car, or quality shoes, is actually more frugal than constantly replacing cheaper alternatives.
• Experiences enrich your life. Memories with family and friends, or investments in self-growth like education, often outweigh the temporary satisfaction of holding onto every dollar.

Signs you’re leaning too spendthrift

Overspending can creep up without you realizing it. Here are a few signs that you might be too spendthrift:

• You catch yourself making spur-of-the-moment purchases instead of following a spending plan.
• You carry a credit card balance from month to month.
• Your checking account feels like a mystery ride, swinging from full to empty and leaving you wondering where the money went.
• You tend to chase the fun stuff first, wants over needs, splurges over basics.
• You make a good income, yet your savings account never seems to grow.
  
  

Finding the sweet spot

It is possible to find a balance. Here’s some ideas to keep your financial footing.

• Create a values-based budget. Identify what matters most to you (travel, fitness, education, family time) and allocate money toward those things without letting extras derail your goals.
• Use the 50/30/20 rule. Spend 50% of your income on needs, 30% on wants, and 20% on savings & investing. This helps control overspending while leaving room for fun.
• Think before spending. Before making a major purchase wait at least 48 hours. Ask yourself Does this align with my priorities, or Is it just impulse?
• Think in seasons, not seconds. Frugality is planting seeds for tomorrow, while spendthrift habits can leave the soil barren.
  
  

Remember, at the end of the day, money is just a tool. Use it wisely, and it can help you build a life that feels secure and rewarding.