I wrote down this statement in a journal notebook with the intention of writing an article on it. But I wrote it down months ago, and I only saw it yesterday. Actually, the full quote stated that money belongs in the flow and it should not be hoarded.
When you think about it, money really flows. There had been some fairly in depth theories and models created to explain the ins and outs of the flow of money. However, from what I do remember about that statement was that the person was making a case for spending money and not keeping it hidden away under the bed.
However, I’m all for saving money. It is a staple of my budget and I will keep it that way. If I’m being pushed into a situation which might call for all of my financial resources, feelings of guilt appear when it looks as though I might not get to save any money. (P.S. This has changed now because I have made it a rule to save at least 10% percent of my salary.)
I’m also cool with spending money too. But I don’t go head over heels when shopping. Instead I try to make cool, rational decisions by using the needs versus wants classification. If it’s a need, I’ll get it. If it’s a want, I will bypass it or try to make it, if possible. I don’t mind treating myself either. As long as I budget for it and I feel comfortable with the idea, I’ll do it.
Finding the right balance that works for you is the best advice that I can give you. I can sit here and talk about how you should do this and how you should do that. But at the end of the day, you have to analyse your own situation and base your decision on the results of your analysis.
To some extent, I agree that money belongs in the flow. I’m not even going to try to explain where the cycle starts (it reminds me of the chicken and egg situation – who comes first?), but we all have a part to play on that cycle – whether you buy stuff, pay taxes, collect welfare or save money. But I disagree that we should spend all of it willy-nilly.
I would encourage anyone to save. Even if you don’t have goals, you should save something. The smallest amount is better than nothing. And if you add a ten small parts, you have one great part that can make a difference.