What matters most? Living for today or planning ahead?

The future might seem a long way off, so it can be easy to take a very short-term approach to life.

But that can be a problem when it comes to how you manage and spend your money.

According to research by Coventry Building Society, more than half of us (56%) prioritise experiences ahead of saving for the future.

And that approach is showing in how we use our monthly pay.

One in three say they buy themselves a treat every payday, such as:

• new clothes
• gadgets
• weekends away
• takeaway dinners
• streaming subscriptions

Millennials most keen to live for today

Perhaps unsurprisingly, it’s young adults who are happiest to spend on experiences and put off planning for the future for another day.

Figures showed that 29 to 44-year-olds are twice as likely to pay for experiences than people in their parents’ age group.

“That doesn’t mean people don’t care about the future,” said Jonathan Wilson, senior savings manager at Coventry Building Society.

“But it does show how much value we all place on enjoying life in the here and now.

“Many of us try to save for life’s rainy days - but it’s just as important to set something aside for the everyday moments that matter.”

Gen Z are keen savers

While plenty of people love to “live for today,” many are still thinking ahead financially. 

Figures from Coventry Building Society show that the average Brit starts saving seriously at 25.

But it’s younger people who are leading the way when it comes to disciplined savers.

Gen Z people - those aged 18 to 24 - were found to be putting away around a fifth of their income each month.

That compares with 17.9% among millennials and 13.1% among over-65s.

Budgeting doesn’t just mean cutting back

Many of us want to be in that sweet spot where we can enjoy the moment without derailing our plans for the future.

One way to get there is by getting on top of your household budget.

When you think of budgeting, you might just think of making sure you’ve got enough money to pay your bills.

And yes, that’s really important.

But budgeting doesn’t just mean that and not letting yourself have fun.

It can also include making sure you have money for treats, luxuries and experiences that enhance your life.

After all, you’ll enjoy them far more if you know you can afford it without having to worry about how you’ll pay for essentials afterwards.

Get started by checking out our guide to how to create a budget, so you can see how much money you have coming in each month and where it’s going.

You can then prioritise your spending and know how much you can afford to spend on treats and experiences, without putting your long-term goals at risk.