'I SAY NO TO FUN TO SAVE MONEY—IS IT WORTH IT?' HOW TO FIND BALANCE BETWEEN SAVING AND LIVING
Skipping a concert means she saved some money right?
Right?
Kavya Mahiyaria often worries that she might seem like a bore. The Dubai-based sales professional and expat skips several outings, concerts and dinners with friends every month as she doesn’t want to spend money unnecessarily. While she takes comfort in her growing savings, the fear of missing out still lingers.
There’s a reason behind her fears. “I grew up watching my family struggle through financial instability, and that fear never left me," she explains. "No matter how secure things seem now, there's always a voice in the back of my mind whispering—what if it all disappears?"
However, she admires her sister for not harbouring any such worries: She goes for trips abroad, enjoys staycations, getaways, and has fun with her friends regularly. “I used to feel resentful of her, and I often ask her, how do you manage? Didn’t we go through the same childhood,” she laughs.
It’s a tricky balance. Some feel an undeniable urge to splurge, trusting that the future will sort itself out. Others, like Mahiyaria, worry about running out of money later. The fear of retiring with nothing or facing financial instability looms large in their minds. It’s the curious financial paradox: Saving for the future, and missing out on your life now.
So how? How do you enjoy your life in the present as well as save for the future?
The psychological risks of saving for the future and missing out on the now
Too much of a good thing can be bad, and financial security is no exception.
When you place entirely too much emphasis on future financial security, it creates psychological trade-offs, such as crippling stress, burnout, and essentially missed opportunities for meaningful life experiences, explains Mercedes Sheen, Head of Psychology Department, School of Social Sciences, Heriot-Watt University Dubai.
She says, “While long-term planning is important, it relies on the assumption of stable economic conditions, health, and personal situations, which are often unpredictable.” Delaying gratification too long can lead to regrets—missed travel experiences, lost connections, and a dwindling sense of fulfillment.
The financial risks
Ironically, the pursuit of absolute financial security can introduce new financial risks.
Jelena Janjusevic, Associate Professor of Finance, explains why and how. There’s a risk in solely banking on pensions, investments or future earnings. Life and well, the market is unpredictable: There could be market fluctuations, economic downturns, and even personal circumstances can alter financial stability. “Diversification and adaptability are crucial, ensuring a comfortable future while allowing space to live fully today. For example, relying heavily on stock market investments without liquidity options can lead to challenges during downturns. Having a mix of assets, including emergency funds, real estate, and passive income sources, offers financial flexibility,” she says.
The takeaway? A strong financial plan shouldn’t force a choice between enjoying today and securing tomorrow—it should allow both to coexist. Smart financial planning should empower, not restrict, ensuring that individuals can enjoy the present while preparing for the future. After all, as Henry David Thoreau aptly put it, “Wealth is the ability to fully experience life.
After all, ‘Wealth is the ability to fully experience life,’ as Henry David Thoreau aptly put it.
Striking a balance
So, how do you maintain financial security without sacrificing the joy of living in the moment?
Financial mindfulness
Janjusevic suggests intentional planning—allocating a portion of income towards savings and investments while setting aside funds for life’s experiences. “Many people fear running out of money and save excessively, while others spend impulsively and risk financial instability. Striking a balance requires understanding your spending habits, prioritising needs and wants, and aligning financial decisions with personal values,” she says.
A structured, yet flexible approach
Sheen recommends the 50-30-20 rule:
· 50 per cent of income for essentials,
· 30 per cent for leisure activities,
· 20 per cent for savings.
“This approach builds financial security while allowing space for enjoyable experiences. Viewing savings as an investment in future freedom rather than a restriction can also reduce resistance. Using behavioural techniques like automated savings and setting experiential spending goals can help maintain a sustainable balance between responsibility and enjoyment,” she explains.
Can financial planning tools help or hinder?
Undoubtedly, modern financial tools offer invaluable insights, allowing people to track savings, investments and expenses. You have budgeting apps at your fingertips, that help categorise spending and set financial goals. Moreover, investment platforms make wealth-building more accessible, while AI-driven financial advisors like provide automated, goal-based investing strategies, explains Janjusevic. Retirement planning tools help individuals assess future financial security.
She adds, “While these tools empower better financial decision-making, over-reliance on them—checking balances too frequently or reacting emotionally to market swings—can create unnecessary stress. The key is using them as strategic guides rather than anxiety triggers.”
The focus should be on careful usage, explains Sheen. In fact, use these tools to cultivate control and confidence, instead of becoming overly fixated on numbers. “Simplified, goal-oriented planning methods can encourage individuals to concentrate on progress rather than striving for perfection.”
In conclusion, ultimately financial security and a fulfilling life aren’t mutually exclusive. While financial prudence is essential, excessive saving can lead to missed opportunities for enriching life experiences. The goal should be to save efficiently rather than excessively ensuring financial resilience without compromising well-being. A rigid, future-focused mindset can lead to regrets, as life is unpredictable. Investing in experiences, personal growth, and relationships often yields returns beyond financial metrics.
2025-03-20T05:39:54Z