Is it possible to enjoy your life today while still building a wealthy future?
Yes. Living sensibly means finding the sweet spot where you satisfy your basic needs and enjoy some rewards without sacrificing your long term security. It is about making small, smart choices that let you stop tracking every penny and start living with purpose.
In my books and posts, I constantly harp on the concept of living sensibly. To some, that sounds like a fancy way of saying “stop having fun.” But that is not it at all! Living sensibly is the concept of allowing yourself to enjoy life while also preparing for the future. It is about establishing a balance between wants and needs. Life is to be enjoyed, but there must be reasonable limits on the pursuit of wants.
The Mystery of Wants vs. Needs
I find it fascinating that the average person simply cannot separate needs from wants anymore. We live in a world where easy credit and non stop advertising make us feel like every whim is a life or death requirement. Without discipline, a want will always be justified as a need.
Think about the last time you bought something on a whim. Was it a new gadget? A designer coffee? A car that costs as much as a small house? Every business wants a piece of your spending dollar and your available credit. They entice you with messages designed to make you feel “behind” if you do not have the latest and greatest. This constant consumerism is why living sensibly is so hard, but so important.
Meet Emma and John. They are a hardworking Canadian couple with a decent income. Every evening, after a long day at work, they feel too tired to cook. They justify ordering take out three or four times a week as a “need” to cope with their stressful lives. They feel they deserve this convenience. However, at the end of the month, they wonder why their Registered Retirement Savings Plans (RRSPs) and other savings are not growing as fast as they hoped.
The True Cost of Convenience
Take the simple example of eating out. My mother grew up in a family of six sisters. Their special treat was to go out for a single scoop ice cream cone. A full meal out would be unthinkable. In my own family, my sister and I were raised by a single mother. Our special treat was a restaurant meal every couple of months.
Compare this to the modern habit of ordering take out food via apps multiple times a week. People often justify this as a “need” because they are busy. Plain and simple, it is a wasteful and expensive want driven by the laziness to cook one’s own meals. If Emma and John skipped the take out and put that money into a Tax-Free Savings Account (TFSA), they would be shocked by the results over twenty years.
Action Steps for Sensible Eating:
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Plan your “cheat” days:
Decide on one day a week for take out rather than letting it be a nightly impulse.
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Batch cook on Sundays:
Spend two hours preparing meals to avoid the “too tired to cook” excuse on Wednesday.
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Calculate the “Ice Cream Scoop” factor:
Ask yourself if this purchase is a rare reward or a mindless habit.
How Wants Get Justified as Needs
We are experts at lying to ourselves. We tell ourselves that a $1,000 smartphone is a “need” for work, or that a luxury SUV is a “need” for Canadian winters. While you definitely need a phone and a safe way to get around, the “extra” features are almost always wants.
Living sensibly means accepting that ridiculous wants cannot be justified as needs. The idea that an experience is “special” is founded on the principle of it being a reward that we wait for patiently. This is exactly the opposite of instant gratification. When we get everything we want the second we want it, nothing feels special anymore. Even worse, we end up with a pile of debt and a very empty RRSP.
The Instant Gratification Trap
If you cannot control the urge to have everything you want right now, you will doom yourself to a lower standard of living in retirement. The ultimate delayed gratification reward is a comfortable and secure retirement where you do not have to worry about the grocery bill.
Small Changes, Big Impact
You do not need to live like a monk to be successful. You just need to be honest. If you save $50 a week by making coffee at home and cooking one extra meal, that is $2,600 a year. If you invest that in low cost index funds inside your TFSA, compounding interest turns that small change into a massive nest egg over thirty years.
Sarah and Mike decided to stop “budgeting” because it made them feel guilty. Instead, they adopted the Never Budget Again philosophy. They automated their savings first, then lived sensibly on the rest. They found that because they weren’t tracking every single loonie, they actually enjoyed their occasional restaurant meals more because they knew the “future Sarah and Mike” were already taken care of.
Practical Tools for Canadians
To live sensibly, you need to use the tools available to you. We are lucky in Canada to have several government backed ways to grow our wealth. You do not need a complicated spreadsheet to manage these.
Using Your TFSA and RRSP
The TFSA is perhaps the greatest tool for the sensible spender. Any money you put in grows tax free, and you can take it out whenever you want without a penalty. It is perfect for both short term goals (like a new car) and long term wealth. The RRSP is your best friend for lowering your tax bill today while building that “ultimate reward” for your future self.
Quick Tip: Use the CRA My Account portal to check your contribution limits. Do not guess!
Automation Over Discipline
Discipline is a finite resource. You only have so much of it each day. By the time you finish work, your discipline is gone, which is why you order that pizza. The secret to living sensibly is to remove discipline from the equation. Set up an automatic transfer from your chequing account to your savings or investment account the same day your paycheque hits. If the money is gone before you can spend it on a “want,” you have already won.
Ways to Automate Your Success:
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Pay yourself first:
Set an auto-transfer of 10 percent of your income to your TFSA.
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Use a Canadian app:
Tools like Wealthsimple or your bank’s own auto-save features can round up your purchases to help you save without thinking.
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Bill payments:
Automate all your utility and phone bills so you never pay a late fee again.
The Psychology of “Special”
Why do we feel the need to spend? Often, it is because we are bored or looking for a quick hit of dopamine. We call a random Tuesday “special” just to justify a bottle of expensive wine. But when every Tuesday is “special,” no Tuesday is actually special.
When you practice sensible living, you reclaim the joy of the reward. Sarah and Mike found that by waiting until their anniversary to go to a high end steakhouse, the meal tasted better than all the rushed take out they used to buy combined. They saved money, but they also increased their happiness.
Living With No Guilt
The best part about this balance is the lack of guilt. When you have a sensible plan, you do not have to feel bad about buying a new pair of shoes or going to a movie. As long as your needs are met and your future is being funded automatically, the rest of your money is yours to enjoy.
This is the core of the sensible financial path. It is not about restriction; it is about direction. You are directing your money toward the things that actually matter rather than letting it leak out of your pockets on things you will forget by next week.
Conclusion: Your Sensible Future
We all deserve a better future. The sensible balance between wants and needs must become your goal. It starts with a simple realization: you cannot have everything right now if you want to have anything later.
Start small. Look at your spending from the last week. Identify one thing that was a “want” disguised as a “need.” Next week, try to skip that one thing and put that money toward your future instead. You will find that you do not miss the “want” nearly as much as you enjoy the feeling of security. That is the true power of living sensibly.
Please share your thoughts in the comment section below.
Remember: This article provides general information and shouldn’t replace personalized financial advice. Consider consulting with a qualified financial professional for guidance specific to your situation. All investment carries risk, and past performance doesn’t guarantee future results.
In my E-books (“Water Barrel” and “The Balance”) I discuss simple methods to live sensibly for today, take charge of your financial affairs, and invest safely for the long term. For more information please visit David Penna Amazon.
In Never Budget Again”, Canadian financial educator Jim Green shows you how to take control of your money without the endless tracking, restrictions, or shame that make most budgets collapse. This book is a practical, encouraging guide for everyday people who are tired of feeling stuck, stressed, or behind financially.
Whether you’re 25 or 55, single or supporting a family, this book helps you rebuild your financial foundation from the ground up — one clear, doable step at a time. Available on Amazon
Disclaimer for ManageYourMoney.ca
The information provided on ManageYourMoney.ca is intended for educational and informational purposes only. It should not be taken as financial advice. The opinions shared are those of the authors and are meant to encourage sensible financial habits and decision-making. We recommend that you do your own research or consult a certified financial advisor before making any financial or investment decisions. All investments come with risks, and there is no guarantee of success. Past performance is not a reliable indicator of future results. Always consider your personal financial situation and risk tolerance before pursuing any investment opportunities.
As always, we are not a qualified financial advisors. We just relate financial management to our own experience which may not resemble yours at all. Advice is frequently worth exactly what you paid for it. Most of ours came from expensive experiences.
