Common sense and tradition would tell you to spend less to be able to save more. However, this habit makes more people buy cheaper stuff just to feel like they are spending less.
Little did they know that buying cheaper products makes them spend even more because these things don’t last long and in the end it makes them buy another. This is just one of the instances when spending less makes you save less too.
Here are scenarios when spending more helps you save more:
Quality over budget. It seems wise to buy items half the price of its better quality counterpart, but this can actually hurt the purchaser in the long run. For example, if you buy a $200 living room set, you might find yourself buying a new one in a short span of time, making you spend more. While a more quality $1,200 worth living room furniture will last for a very long time, which made you save from repurchasing.
Donate to charity. 10% of your income should go to tithes. You don’t have to give it to the church; you can choose to give it to charitable causes. They say God will find a way to take that 10% from you in the future and you wouldn’t want to suffer His wrath, would you? You will also feel good when you donate. But in a more superficial, tangible, and financial aspect, donating to charity is sometimes tax-deductible, which helps you save later on.
Invest. Spend more on things that can make you earn such as bonds, mutual funds, stocks, real estate, insurance, retirement funds, real estate, and businesses. It would be best if you have an account where your investment money gets funnelled automatically.
Buy and sell. Having a buy and sell mentality can help you earn in the long run. Keep a keen eye for great deals, but this doesn’t mean you have to spend every time you see a good deal. Be wise and think about the appreciation rate for each item you buy. Also take care of your things and increase its value, so that you might be able to sell them for a higher price next time.