Financial Implications In Spending Before Or After Saving

This is a topic to debate on as I've seen people who prefer to spend from their earnings before they decide on the amount to save. Some persons would have savings in mind to do before they earn the money but somehow, they forget that and spend from the money first.

There are financial implications in doing any of these two... Spend before you save, or save before you spend... Which would you prefer to do?

While you decide the one you'd prefer to do, I'll share the implications I could think that could happen when you choose any of the two options. Of course, it depends on each individual, what works for Mr A may not work for Mr B and vise versa. Most importantly, it's worthy to note that savings are saved for spending but not immediately and for future spending... So in the end, we are saving to spend.

When you save before you spend...

You get to save more than you spend as you'd be occupied with how awesome the future would be if you'll just save more and get rid of your unnecessary spending in the present. You also get to spend on only the important stuffs, you buy just what you need and you try hard to buy them in quality to avoid loss after short period of buying the item.

Saving first gives you an amount of reminder to work with and you get to learn more management with what you have at hand after saving. This way, you utilize your earnings more and you still get to have some left over to get by.

When you spend before you save...

This is a bit dangerous as you've decided to go through the temptations of buying different things even the unnecessary ones since you didn't set yourself on a limit. But a positive light to this is that it makes you spend more comfortably on yourself (a way of paying yourself). Even at that, saving for your future is also for you.

When you spend first, you tend not to work with a plan and you end up procrastinating about saving which in turn might have a bad effect on your saving plans. But it is very possible to spend before you save and still save well.

It's all about discipline and the amount earned at every given point in time. Utilize your earnings by saving or investing with them, but disciplined about it and know what works well for you.