When my son was 2-3 years old, I would buy him something every month. It gave me great satisfaction to see him having fun while playing with new toys. I haven’t bought a single gift for my son in the last couple of years – and yet he has more toys than ever. Every year, on his birthday, he gets so many gifts from friends and family, that we ration those gifts over the rest of the year. By hiding his gifts and opening them up one a month, we have created a happier kid, lesser clutter and a more economical household.
When my company was a year old, I would buy 3-4 board- and card- games every month. We had a budget set apart for it. A game-based L&D company has to invest in games. Duh! After buying, playing, and facilitating with dozens of board games, we decided to try something different. We hired the services of a great game designer and couldn’t be happier. Shoutout to S. We redirected the entire game-buying budget towards her and now we are creating a brand new original game every month. We have created a better product line, a great partnership and happier clients.
In the former case, I decided to save the money. In the latter case, I decided to spend the money but differently. Both options have resulted in better outcomes than whatever we were doing before that.
There is never a clear answer on what to do with money. Saving is not always good. Spending is not always bad. As a small company, we need to learn how to find the right balance between small budgets and big ambitions.