I think what so many of you have said is so true -- save some and spend some. My dh is retiring in September so we have been working to pay off things in the past few years. We just paid off our cars. I watched my parents who worked hard all their lives live in almost poverty and I don't want that. That's why I save.
That being said, I also agree with those who said they don't not spend. I have a friend who makes decent money, but doesn't spend. He's not financially savvy -- he always dreams of making it big in penny stocks and he always loses -- and he comes over and admires the nice furniture we have -- everything he owns is hand me downs. When I suggested he put his money in CD's or a savings account and save some and spend some, he just shakes his head. His clothes are threadbare, his car is old and crumbly, and he likes admiring the new things others might have -- yet he continues not spending and wishing he had things. I think he's going to look back on life (he's not ancient --54 -- and realize he could have had more. His mom fixes up her house and buys things and still saves money. And his brother does the same. Maybe he was dropped on his head in the hospital or something when he was born? :-)
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