Quote:
Originally Posted by F16
Hello Steve! The point of saving and investing your hard-earned money is to secure the future of yourself and your family. Saved money must go not for fun, ice-cream, nice foods, restaurants, movies and so on.
Spending means becoming not rich.
You can't save for retirement, save for kids education, save for home, for vacation home, for boat, and on the same time have fun european vacation with lots of presents bought for friends and relatives.
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I think I understand what you are saying, but I have to disagree to a point.
"Saved money must go not for fun" Do you really believe this? Do you think people shouldn't get to enjoy any of their money and only spend for necessities of life? People save for all kinds of goals including fun things like new vehicles, vacations, parties for special occasions and recreational equipment (boat, RV, snowmobile, etc.).
"Spending means becoming not rich." is only true if you are spending INSTEAD of saving. It is very possible to spend AND save at the same time. For example, we max our Roths, my wife funds her 401k, we contribute to taxable investment accounts, we fund our daughter's 529, etc. So we are saving to secure our future. But we also are able to travel regularly, dine out, buy nice things, give gifts and spend our money in other ways. It doesn't have to be an either-or proposition.
There is absolutely nothing wrong with spending money as long as it is done responsibly and within the bounds of a well-thought-out financial plan that takes into account all your needs and goals, both short-term and long-term.