If you haven’t figured it out already, I’m a shopaholic. Actually, I’m sort of fighting being a spender and trying to be better, but just like in AA, once a shopaholic, always a shopaholic. However, as a personal finance blogger, I also know that I should be saving and investing as well. But when push comes to shove, it can be hard to not buy what I want. Here is my latest thought on whether I should be shopping or investing.
The Pros of Shopping
The best thing about shopping is that it can make me happy today! I love going out to the mall and browsing different stores just to see what is out there. Heck, I love going to thrift stores and seeing what is out there. The best thing about shopping is that I get instant gratification for spending my money. Once I buy what I want, I have it and can experience it right away. There is no waiting, and there is nothing else to it.
The Pros of Investing
On the other hand, I know I should be investing in my future. The best thing about investing is watching my money grow over time. I can deposit a little here and a little there, and after a few years, it can grow to be a lot of money. I also know that I need to take care of myself in the future as well. If I want to be able to continue shopping when I get older and retire, I need to have a nice bank of money to be able to spend. If I don’t invest, I may not be able to continue living the same lifestyle that I’ve grown accustomed to and want for the rest of my live.
What Should I Do?
So, what should I do? This is a tough one because I am so torn between the two extremes. On one hand, I really enjoy my life today and being able to go shop. However, I know that I need to save and invest, because I want to continue to do this, even when I’m 65.
The biggest drawback of investing is that investing isn’t fun or sexy. Buying new clothes is. Why would I want to do things such as investing in capital finance, when I could invest in a new top?
The Solution
The solution is balance. I’m going to make sure that I balance my spending with my savings and investing. I want to make sure that I’m maxing out my IRA if I can, but at the same time, I don’t want to sacrifice myself in the present either.
I’ve also looked at credit cards like the Fidelity card, which pays 1.5% cash back, but it deposits it into a brokerage account automatically each month. This would almost force me to invest, but at the same time it is the result of my spending. Almost like the best of both worlds!
Ha ha ha!!! Absolutely the same scene here. However, I have made it a habit to first invest. Because if I don’t have that extra cash to blow; how I would pursue my shopping at a later point. Shopping gives you a temporary kick and you will start having the craving to blow up again and this is a vicious cycle. However, with investments, you can see the money grow and grow and grow…. Happy Investing!!!