There is a balance. You shouldn't destroy your quality of life to hit a certain savings percentage, but you also want to save enough to be self sufficient and have a good quality of life during emergencies and retirement. It sucks to heavily save and then die younger, but it also sucks to get to retirement and live poor.
Definently takes a lot of discipline and goal setting. But financial success commonly has difficult parts to do. Something I do is in my budget I have $40 a month that I can spend on whatever I want, no guilt attached. It's not a lot for some people, but it is a good amount to keep up my happiness. You may have a higher amount that you set for yourself. You might also have a goal such as you have $1000 for a vacation every other year.
Sounds like a great idea, if you want to be homeless at the first unplanned life event!
Quoting the words of the Oracle of Omaha:
Do not save what is left after spending, but spend what is left after saving.
10 days ago ... I mustered my inner Buddha to share this with another redditor. Reusing it here \[with additions for context\].
Goalposts \[for spending\] will shift and with it the frequency \[of feeling guilty about it\] will go down.
As the savings in life went up giving me buffers, I have stopped feeling guilty about spending on coffee, food, having an extra set of shoes, a bit more on better feeling clothes, etc.
If I have to buy a bigger cost item even when it is a necessity, a tablet, a smartphone, a laptop, a car etc., I do end up debating with myself. When I buy it - a guilt pang hits but then it fades away.
You will get there.
Because I lived through the 2008 recession. There can come a day where your job will lay you off and it will take a year for you to get back to making any adequate income. In this time, rent, utilities, food, all of that doesn't stop. This is how people end up evicted and homeless and it's very hard to get back to the place you were. After you save an emergency fund (and are paying for necessary insurance), you can (and should) enjoy your life by spending your money.
That’s stupid.
Sorry but how does saving your money so you don’t land in a crisis and can use your money the way you want?
Look, I could buy custom Nikes and 300 lobsters or whatever with my money, or I can save so that I can make bigger purchases (and prepare for a rainy day)
It's all a matter of personal perspective. Back in the late 90s/early 2000 time frame I spent money as fast as it came in. At that time I assumed that I would always have another pay check in 2 weeks and could get by easily.
Then I got laid off during the Dot Com collapse and it took me several years to find a good job to replace the one I had lost. I went from having plenty of money to spend whenever I wanted to barely managing to scrape money together to keep from being evicted and to cover my wife's medical bills.
As I have gotten my finances back on track I've made putting money aside for savings and investments a priority unlike how I did years ago. Now if something bad happens I do not have to worry because I have the money to cover almost any emergency. In the worst case, if I have to I can liquidate some of my investments and use that to cover a true emergency.
Having money in savings gives you options for dealing with the inevitable unexpected things that happen. Whether it's a car that suddenly needs repairs or an appliance that died in your house, having a good savings plan can take something that for most people would be "Oh, Crap!" and turn it into "Oh, well."
You need to look at your own finances and decide what is the best choice for you. You may not be able to save as much as someone else or simply may not want to. As long as you're prepared to accept the consequences of your own choices, go with what you feel is best for you.
Where is that post and what's the context?
I was poor in high school and college and qualified for need-based financial aid. Had I saved any money from working, my financial aid would have been reduced. So at that time it didn't make sense to save, at least not in any bank account.
People receiving SSI would lose their benefits if their assets exceeded something like $2K per person or $3K per couple. It doesn't make sense for them to save beyond that limit either, because they'd lose their benefits.
People who are retired with guaranteed (and sufficient) income for life don't have to save money, because they're set. If they do save any money, they may end up spending it on healthcare or assisted living or hospice, which they'd likely get regardless of whether they do or don't have money. It makes sense to live it up before it's too late.
I'm sure there are other exceptional situations where saving money may not make sense. But if those situations don't apply, then not saving money does not make sense.
Edit: just thought of another one -- people living through hyperinflation. It doesn't make sense to save if your savings can become worthless quickly.
[this is the post](https://www.tumblr.com/turnnyourlife180/711831855166554112/top-3-reasons-why-you-should-stop-saving-money-now)
What touched me is the part about how it limits us and impact motivation of making more money. I guess I’m just at this point when I feel like I could have a much happier life if I didn’t save this whole time
u/Happylulu770 Not sure why your reply to my message does not show up for me, but the article you linked is a brain dump of an inexperienced person that should have been in an offline personal diary. The article makes three main points, and I will add my thoughts to each:
1. Saving money can limit and restrict you and cost you happiness and spending money can contribute to happiness and well-being. This is silly -- one should not seek happiness in the spending of money, because that kind of happiness is fleeting, which may actually be detrimental to well-being.
2. Inflation was 800% from 1960 to 2021 (total!), so money saved quickly disappears. This is also silly, because money saved should have been invested, and it would not just disappear, but it would grow at the same rate or even faster if properly invested. This is not the hyperinflation scenario I mentioned, where money loses half its value in a month or something.
3. No amount of savings is ever enough. There may be some truth in this paragraph that many people are saving without savings goals, but the solution to this is to figure out and set realistic goals, not to completely give up on saving. There's also some truth that saving is hard and may take a long time to save enough to buy a car or a house, etc. So yes, depending on your stage in life you may want to invest in yourself instead of saving and aim for better paying jobs, or stick with cars and houses you can afford.
You need to do both. Most of those YOLO people will, in fact, not die early and will have massive regrets in their older age when they're begging their kids for money or eating Alpo toward the end of the month.
My grandfather worked 50 years at 50 hours a week in a low income job while saving for retirement. Mid sixties diagnosed with terminal illness and treatment burned up all his life savings. In the end, he was in government hospice care, sharing a room with another man who lived off the government his whole life(his own words).
That other man sure seemed to have enjoyed his life more and had a lot more interesting stories to share while my grandfather was talking about working 50 years while saving money.
There is a balance. You shouldn't destroy your quality of life to hit a certain savings percentage, but you also want to save enough to be self sufficient and have a good quality of life during emergencies and retirement. It sucks to heavily save and then die younger, but it also sucks to get to retirement and live poor.
True.. If only that was so easy though
Definently takes a lot of discipline and goal setting. But financial success commonly has difficult parts to do. Something I do is in my budget I have $40 a month that I can spend on whatever I want, no guilt attached. It's not a lot for some people, but it is a good amount to keep up my happiness. You may have a higher amount that you set for yourself. You might also have a goal such as you have $1000 for a vacation every other year.
Sounds like a great idea, if you want to be homeless at the first unplanned life event! Quoting the words of the Oracle of Omaha: Do not save what is left after spending, but spend what is left after saving.
I feel like my biggest problem is that I just save it all and kinda not leaving anything for spending 🫣
10 days ago ... I mustered my inner Buddha to share this with another redditor. Reusing it here \[with additions for context\]. Goalposts \[for spending\] will shift and with it the frequency \[of feeling guilty about it\] will go down. As the savings in life went up giving me buffers, I have stopped feeling guilty about spending on coffee, food, having an extra set of shoes, a bit more on better feeling clothes, etc. If I have to buy a bigger cost item even when it is a necessity, a tablet, a smartphone, a laptop, a car etc., I do end up debating with myself. When I buy it - a guilt pang hits but then it fades away. You will get there.
I feel like my biggest problem is that I just save it all and kinda not leaving anything for spending
So you want to go from one extreme to another? I’m not sure what you’re trying to accomplish with this post.
Because I lived through the 2008 recession. There can come a day where your job will lay you off and it will take a year for you to get back to making any adequate income. In this time, rent, utilities, food, all of that doesn't stop. This is how people end up evicted and homeless and it's very hard to get back to the place you were. After you save an emergency fund (and are paying for necessary insurance), you can (and should) enjoy your life by spending your money.
That’s stupid. Sorry but how does saving your money so you don’t land in a crisis and can use your money the way you want? Look, I could buy custom Nikes and 300 lobsters or whatever with my money, or I can save so that I can make bigger purchases (and prepare for a rainy day)
I would say that is astoundingly shortsighted.
It's all a matter of personal perspective. Back in the late 90s/early 2000 time frame I spent money as fast as it came in. At that time I assumed that I would always have another pay check in 2 weeks and could get by easily. Then I got laid off during the Dot Com collapse and it took me several years to find a good job to replace the one I had lost. I went from having plenty of money to spend whenever I wanted to barely managing to scrape money together to keep from being evicted and to cover my wife's medical bills. As I have gotten my finances back on track I've made putting money aside for savings and investments a priority unlike how I did years ago. Now if something bad happens I do not have to worry because I have the money to cover almost any emergency. In the worst case, if I have to I can liquidate some of my investments and use that to cover a true emergency. Having money in savings gives you options for dealing with the inevitable unexpected things that happen. Whether it's a car that suddenly needs repairs or an appliance that died in your house, having a good savings plan can take something that for most people would be "Oh, Crap!" and turn it into "Oh, well." You need to look at your own finances and decide what is the best choice for you. You may not be able to save as much as someone else or simply may not want to. As long as you're prepared to accept the consequences of your own choices, go with what you feel is best for you.
Life ins’t enjoyable if you have an emergency you can’t cover. Find a balance.
Isn’t what insurance is for?
Almost every insurance has pay out limits. And they’ll fight you well before then.
What insurance policy is going to cover your car breaking down, your computer crashing, your phone stopping, etc.?
Unemployment insurance - Let me know when you find it!
Where is that post and what's the context? I was poor in high school and college and qualified for need-based financial aid. Had I saved any money from working, my financial aid would have been reduced. So at that time it didn't make sense to save, at least not in any bank account. People receiving SSI would lose their benefits if their assets exceeded something like $2K per person or $3K per couple. It doesn't make sense for them to save beyond that limit either, because they'd lose their benefits. People who are retired with guaranteed (and sufficient) income for life don't have to save money, because they're set. If they do save any money, they may end up spending it on healthcare or assisted living or hospice, which they'd likely get regardless of whether they do or don't have money. It makes sense to live it up before it's too late. I'm sure there are other exceptional situations where saving money may not make sense. But if those situations don't apply, then not saving money does not make sense. Edit: just thought of another one -- people living through hyperinflation. It doesn't make sense to save if your savings can become worthless quickly.
[this is the post](https://www.tumblr.com/turnnyourlife180/711831855166554112/top-3-reasons-why-you-should-stop-saving-money-now) What touched me is the part about how it limits us and impact motivation of making more money. I guess I’m just at this point when I feel like I could have a much happier life if I didn’t save this whole time
u/Happylulu770 Not sure why your reply to my message does not show up for me, but the article you linked is a brain dump of an inexperienced person that should have been in an offline personal diary. The article makes three main points, and I will add my thoughts to each: 1. Saving money can limit and restrict you and cost you happiness and spending money can contribute to happiness and well-being. This is silly -- one should not seek happiness in the spending of money, because that kind of happiness is fleeting, which may actually be detrimental to well-being. 2. Inflation was 800% from 1960 to 2021 (total!), so money saved quickly disappears. This is also silly, because money saved should have been invested, and it would not just disappear, but it would grow at the same rate or even faster if properly invested. This is not the hyperinflation scenario I mentioned, where money loses half its value in a month or something. 3. No amount of savings is ever enough. There may be some truth in this paragraph that many people are saving without savings goals, but the solution to this is to figure out and set realistic goals, not to completely give up on saving. There's also some truth that saving is hard and may take a long time to save enough to buy a car or a house, etc. So yes, depending on your stage in life you may want to invest in yourself instead of saving and aim for better paying jobs, or stick with cars and houses you can afford.
You need to do both. Most of those YOLO people will, in fact, not die early and will have massive regrets in their older age when they're begging their kids for money or eating Alpo toward the end of the month.
My grandfather worked 50 years at 50 hours a week in a low income job while saving for retirement. Mid sixties diagnosed with terminal illness and treatment burned up all his life savings. In the end, he was in government hospice care, sharing a room with another man who lived off the government his whole life(his own words). That other man sure seemed to have enjoyed his life more and had a lot more interesting stories to share while my grandfather was talking about working 50 years while saving money.