Is it Possible to Save TOO Much?
We are constantly reading about how important it is to save money – for our children, for our homes and needs and for our future. But can this worthy habit become too much for some people to cope with? Are there times when saving money can become a hindrance rather than a help?
It shouldn’t come as a surprise to learn this is indeed the case. A lot depends on your own habits and whether you are naturally a spender or a saver. However it is possible for some people to go too far and save to extremes, leaving little if anything to actually enjoy as they live their lives.
Saving for tomorrow
It is admirable and indeed necessary to set up good savings habits so you have some money in the bank for the future. This could be for a vacation, your child’s university days or perhaps for your retirement. There are a million and one worthy reasons why you can and should save money.
However there are also plenty of reasons why you should guard against saving to extremes. Let’s look at a hypothetical situation that describes the difference between normal saving and extreme saving. The latter may involve you wanting to save every single cent instead of actually enjoying any of it. For example, you might be tempted to treat yourself to a coffee and a donut while you’re out one morning, but you decide to save that cash instead. If you do this in every situation you’re in, you could end up spending nothing and becoming overtly thrifty. There is nothing wrong with being thrifty but if you never spend anything you won’t enjoy your life either.
Goals are important
The above example shows you just how important it is to set goals for saving a certain amount of money in a certain period of time. This not only ensures you have a better chance of saving the amount you want, it also ensures you have a little left over to enjoy as you move through life. It’s all about getting the right balance and if you can’t manage that you could move into becoming an extreme saver.
Of course some people love looking for bargains and saving as much money as they can. This is an admirable way to live but you do have to be careful you don’t move into the situation described above. If this should occur you will end up finding you save to the detriment of all else – instead of enjoying your life a little as well.
This should give you something to think about if you are trying to focus on saving without going over the top. Striking the right balance can be tricky. While many would say erring on the side of caution is better, it is possible to overdo it, as we have seen above. Think about this when you are saving and investing money, so you can see whether you are striking the right balance or not.