You may find yourself making huge sacrifices for the sake of saving money. These are some common examples of sacrifices people make to save money that can have negative effects on an individual’s mental health and wellbeing.
I may earn a small commission for affiliate links in this post at no extra cost to you. Please read my disclaimer for more information.
Living with Toxic People
Millennials have to navigate a different landscape for housing than prior generations. Stagnant wages and student loan debt have made it difficult for millennials to afford their own homes. Owning a home has gone from a rite of passage to a luxury. Studies show that 22% of Millennials live with their parents and 7% of millennials live with roommates.
Living with roomates
Living expenses are typically a person’s largest expense. If you are able to reduce your housing costs, you typically have more breathing room and more money to save. Many people decide that they will live with roommates to achieve this goal. If you are trying to save money by having roommates, that’s great! However, knowing what you need in a living situation is huge factor when determining where and who you are going to live with. Do you enjoy quiet time? Does your schedule align with your potential roommate(s)? Do you like having people over? Are you particular about cleanliness, the temperature, or pets? Are you friends or is the relationship neutral? These are huge factors when deciding to live with another person. If ground rules are not fleshed out in the beginning you will probably run into some problems at some point.
What if you just don’t like living with anyone but want to save money?! Rent is expensive and it is difficult to do on one income. The hard truth is, you may just have to bite the bullet and find an affordable place to live alone. Try getting a studio or one bedroom apartment. If you are low on space you can always rent out a storage unit. If you are really unhappy living with others it is worth the extra money to get your own place.
Living with parents
If you are living with your parents, make a decision on how long that situation will work for you. Whether you are staying there for free or paying rent, at the end of the day it is their place and they make the rules. Since this dynamic is different than having a roommate, you may feel like you have lost your sense of independence. Some people regress into habits from childhood while living with their parents. If you went to college, you may have been independent and lived on your own terms. Moving back home can feel restrictive and make you feel compelled to live based on your parent’s expectations. Make a plan for how much money you will need to stand on your own two feet. Pay down debt and build your emergency fund while living at home. If you have money left over to invest, do that too. Take advantage of the benefits that come with living at home while you can then start the next chapter of your life.
Don’t stay in a Dead End Relationship because You Live Together
If you are in a relationship with someone and the only reason that you have not moved on is because you can’t afford to, it is time to take steps to get out of the situation. This may mean getting a higher paying job, a part time job, or saving more of your discretionary income. It won’t happen overnight but the hardest part is usually making the decision to move on. Do the same steps mentioned above: have an emergency fund and try to reduce your debt. If it is the other way around and the person you live with is not in a financial position to stand alone, give them adequate time to make other arrangements. Do not let guilt fuel your decision to stay in a bad situation.
Working in a Toxic Environment
Afraid to take a risk
If you have been in your job for a few years you may be considering what your next career move should be. You may feel intimidated by the idea of going after new opportunities or feel that you are not ready for that next step. You may also be too comfortable with your current situation and fear the unknown. Even if your situation may not be ideal, it is familiar and that is safe. Don’t cheat yourself. If you are eager to progress in your field, start looking at opportunities.
If your biggest roadblock is fear, lean into that. Accept the fact that you may be rejected, but that is not failure. Being rejected for a job not failure. Most of the time, employers are looking for something specific and it is not your fault if you don’t fit into that box. Being afraid to take a risk is failure. Remember, if you don’t ask for something the answer is always no. Never be afraid to at least attempt to go after what you want.
Golden handcuffs
Is your high salary the only thing keeping you at your job? If so, it may be time to consider a different job or career path. Evaluate what it is about the situation that you are unsatisfied with. Is it the daily tasks? Do you work well with your colleagues? Are the values of your department or organization different than your own personal views? Write a pros and cons list and evaluate what is important to you in a job, manager, and employer.
If you find that there are more pros than cons consider, evaluate what you could do to create a healthier environment. You may also need to evaluate your mindset. Sometimes people take the idea of “doing what you love means you’ll never work a day in your life” too seriously. There will always be bad days and there will always be difficult people to work with. That is simply a part of life and something that you will experience everywhere. So if you’re upset that your situation is not pleasant all the time, every day, know that what you are experiencing is completely normal. However, if you find that you are unhappy at job every day for months on end, review your pros and cons list. Ask yourself if you would be happy doing the same job somewhere else. If the answer is yes, perhaps it is time to start looking for a different opportunity.
—
Lifestyle Sacrifices
Making Extreme Sacrifices to your social life (don’t isolate yourself)
If you are on a limited budget, you may feel left out of activities with your friends, family, or colleagues. You may not have the extra money to go out for drinks or take that glamorous vacation right now. Know that there is no shame in this and you should not let anyone make you feel inadequate. However, it is important to realize that you can still have fun on a budget! It may require some thought and planning but it is worth it. Think back to the things that you enjoyed doing as a kid. What were the simple things in life that brought you joy? Try to do those things as much as your schedule allows. It is amazing how often our idea of what is fun is based on what the crowd is doing or what is routine. Don’t let peer pressure influence your decisions and also realize that there are ways to have fun that don’t break your budget.
Skimping on your passions in the name of saving money
Sometimes it feels necessary to put our personal desires aside to provide for ourselves and our family. While we might make these sacrifices in the short term, it is important not to let obligations control our lives permanently. If your focus is always on saving as much as possible, you may lose sight of why you are saving in the first place. Don’t become so obsessed with saving money that you give up the things you did before you started your saving. It is not admirable to deprive yourself of the joys in life for the sake of saving money.
If you have goals that require you to make sacrifices, set a fixed period of time you are willing to make the sacrifice, but don’t make it a lifestyle (unless you want to!). Don’t just live within your means but figure out different ways to expand your means. If your expectations for yourself are outside the norm, you probably want more than to be a slave to the rat race. Start learning about different ways to earn passive and active income.
The purpose of saving money is to have the freedom and flexibility to do what we want with our lives. If you are not fulfilled or constantly in a state where you are feeling inadequate, you may need to look at your life and make some changes.
Disclaimer: The content in this post is my opinion and should not be considered financial advice. I am not a financial expert or advisor. This content is for informational and educational purposes. For more details please visit the Disclaimer Page.
