Lending Club Blog

Spending More on Things that Make You Happy

When most people hear the word “budget,” they immediately think of sacrifice and cutbacks. In reality, proper budgeting can actually let you spend much more on the things that are important to you.

The goal of tracking your finances and following a budget is not solely to get you to spend less, but rather to get you to spend better. Once you know where your money goes, you’ll be able to make decisions about whether or not that allocation makes sense for you. While your goal may be to cut back spending by a certain amount, that doesn’t mean that every category will have to face that cut. You can totally eliminate wasteful spending and use the savings to increase spending in other categories.

What’s wasteful to one person is not necessarily wasteful to another. We all know that eating out costs more than cooking at home. But if eating out is something you really enjoy doing, there’s no need to cut back on that expense. To reduce your overall spending, while maintaining (or increasing) your budget for dining out, you’ll simply have to make up the difference in another category. Perhaps with all the time spent out of the house, you’d choose to downgrade from premium to basic cable. That savings could then be added to your category for eating out.

While the goal of budgeting is typically to spend less, or save more, that can often be accomplished without a sacrifice in the amount spent on activities we enjoy. Cutting the things that make you happy will end up doing more harm than good. Using the possibility of spending more on the things that make you happy as motivation to eliminate spending on things you could care less about is more likely to bring success.

In the end, we only have a fixed amount of money to spend each month. By shifting money spent on unimportant things to those that matter to us, our money is put to better use even if the total amount spent remains the same. If the process can reduce overall spending, that’s an added bonus, but it doesn’t necessarily have to be the priority in following a budget.

Has budgeting freed up money for you to spend on your interests?

Wednesday, March 25th, 2009 at 6:53 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Lending Club 2 – Back in the Race

We’re excited to see Renaud back at the helm!… Read More »
March 26, 2015

Lending Club Store’s Grand Opening

We were thrilled at the support we received from… Read More »
March 20, 2015

LendIt is just one month away!

Congratulations to the LendIt team, who rang the opening… Read More »
March 13, 2015

Nearing Retirement – How an IRA Can Help

An Individual Retirement Account (IRA) can help you prep… Read More »
February 25, 2015

How an Individual Retirement Account (IRA) can help you reduce your taxes

For many investors, January is… Read More »
January 23, 2015

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w