One of the reasons that I like saving money is that there are things I really want that are not cheap, like travel. I’d rather spend less at the grocery store every week so that I have more money for vacation.
Saving up for things is terribly old-fashioned. Yet, like many old-fashioned things, it’s good for you. Elizabeth Dunn and Michael Norton report that when people pay upfront for the things they want, they enjoy them more. In part that’s because people are more careful about what they buy when they pay cash. They buy things they really want rather than things that seem like a good idea at the time.
The second factor is that when people save up for things that they want, they get to enjoy the anticipation. You get extra fun out of whatever it is as you wait to enjoy it.
Saving up makes more financial sense when you can earn interest in the meantime. These days, that doesn’t happen, but that doesn’t mean that saving up is a bad thing. Hardly. Saving up and then spending cash makes you more mindful about what you spend, and that’s good.
It’s an interesting article. Dunn and Norton’s book Happy Money: The Science of Smarter Spending
As we head into the excesses of November and December, keep in mind that a little mindfulness may make whatever holiday you celebrate even more fun. Start putting a little money away now, and you’ll feel better after the New Year.
