The economy is still floundering and the fear of being unable to meet future expenses continues to loom large in the minds of most people. Savings are at an all time high with conservatism being the key characteristic of all investments being made in recent times. Saving is fine, but there is a limit to how much you need to save.

Avoid Penny Pinching

Post recession, many people tend to overdo saving by putting away every spare cent. This may give you a confident feeling for a while as you watch your emergency fund grow. But sacrificing every little ‘extra’ can get awfully tedious and frustrating. In fact, denying yourself those little extra pleasures often ends in a hugely expensive shopping spree where you simply end up throwing money. Give yourself a break and allow a small ‘fun spending fund’ for every month to keep your spending urge in control. [Read more…]