We continuously move back and forth between saving and spending. However, one is more prevalent in our lives. It is essential to know which side you stand so you can modify your behavior if needed.
Savers are people who save more than they spend, and spenders are the opposite. It is ok to be either one, and one is not necessarily better than the other. However, going too far, one direction or the other can lead to issues. This predicament shows up if you are an extreme saver and never spend a dime. You only live once, so go out and live life to the fullest. The opposite is the excessive spender who can be the dangerous one since it leads to the paycheck to paycheck cycle that becomes increasingly hard to break. No one wants to work in retirement. It becomes different when you decide to work not because you have to but because you want to.
The best way to decide if you should spend or save money is values-based spending. There is no straightforward answer here since everyone’s values are different and unique. You may enjoy traveling and have no problem spending $10,000 an all-inclusive beach vacation where another may see no added value in it. The point is if something adds value to you, then spend money on it, but do not go into debt for it unless it will help grow your future earning potential (like a college education).
Once your spending and values are aligned, it will relieve stress and make like more enjoyable. Take a few minutes to write down what adds value to your life, then look over your expenses and cut things that do not add value and only cause you more stress.