The cons of saving money

[robby]

Everyone is always talking about the good that saving money does. Just to have a balanced discussion, what are the cons to saving money in your opinion?

[Bruce Wayne]

Erm, you don't have as much money to spend

[jmjj215]

You think you're better than those who don't save money.

[sweeps]

The biggest con is that you (or your kids or your grandkids) are only young once. You have to strike a balance between securing your future and living your life today.

[sweeps]

Another one: There could be a financial collapse, and your paper wealth would become worthless.

[jmjj215]

Originally Posted by Sweepsplayer

Another one: There could be a financial collapse, and your paper wealth would become worthless.

Because of this risk, I hold all of my wealth in the form of canned goods and ammunition.

It's all just personal preference.

[sweeps]

It sounds like you're not diversifying your investments. Don't forget the duct tape and plastic sheeting.

[Gailete]

>>There could be a financial collapse, and your paper wealth would become worthless<<

Although paper assets may be worthless, a person who has been savings and leading a financially prudent life will have less bills and hopefully a paid in full home. Even if we experienced a financial collapse, the credit card companies and mortgage companies will still be coming after you. How much nicer when everyone is wringing their hands in despair that you will at least not be thrown out of your home.

Gail

[sweeps]

In a true financial collapse, dollars wouldn't be worth the paper they're printed on. If someone is $1,000,000 in debt, they'd happily (and easily) pay it off because the currency is worthless.

Even in a more realistic situation where inflation is very high compared to the savings rate, you're actually better off spending your money right away than saving it because the money is losing value.

[terry1156]

If inflation comes back, saving money could actually cost you a lot of money. MSN currently has a good article talking about inflation in the early 1980s that hit 13% - I'm not sure how many of you remember that, but I do.

<a href="http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P133222.asp">Lessons from the days of 13% inflation</a>

[Bluezy]

At this point in time, I'm unable to come up with any cons to saving money...unless you count having available funds for spending sprees.

[jmjj215]

Originally Posted by Sweepsplayer

Even in a more realistic situation where inflation is very high compared to the savings rate, you're actually better off spending your money right away than saving it because the money is losing value.

I think the truthfulness of that depends on the item you're buying. Fast Food? Nope. That "depreciates" rather quickly A car, now you're talking - maybe.

[sweeps]

Originally Posted by jmjj215

I think the truthfulness of that depends on the item you're buying. Fast Food? Nope. That "depreciates" rather quickly A car, now you're talking - maybe.

True, up to a point. In a hyperinflation scenario, what buys you a Big Mac for lunch may only buy you a small cheeseburger for dinner.

(Fortunately all of this is academic. Hopefully no one is going on a big spending spree because of this thread. )

[jmjj215]

That is true. Then guns and ammo (and duct tape and plastic sheeting) would be a much better investment.

[Snoopy2645]

My only thought on cons of saving is where do you put it to keep up with inflation right now you are lucky if you can get 4% on a CD

[baselle]

If everybody started to save money, ie not spend money, business would grind to a halt.

In your obituary, you become the weird cheap person who the neighbors don't like but who leaves a few million dollars to something. Like this guy: http://tinyurl.com/8p82u

Your spendthrift heirs (like me and my sister ) bleed you dry after the funeral.

[elcheapo]

the cons of saving money all your relatives beg you when they need money

[lrjohnson]

If you save money that would bring better returns being spent. For example, keeping an old, high maintenance, low gas mileage car, and not calculating whether you could actually save by getting a newer better used car. Buying an old super cheap appliance that is very, very costly to run. Buying a cheap suit thats lasts a quarter as long as one that costs twice as much. Saving on dentist/doctor bills by not going. You get the picture.

[TwoNickles]

Originally Posted by lrjohnson

If you save money that would bring better returns being spent. For example, keeping an old, high maintenance, low gas mileage car, and not calculating whether you could actually save by getting a newer better used car. Buying an old super cheap appliance that is very, very costly to run. Buying a cheap suit thats lasts a quarter as long as one that costs twice as much. Saving on dentist/doctor bills by not going. You get the picture.

That's right, I was actually thinking of this as I was reding down through the thread. You have to maintain a balance. You have to *manage* your money. Some is to be used for necessary expenses, some for maintenance, some for savings, etc., etc. If you ignore the maintenance on your car so you can put more into savings, that will turn into a huge expense when you have to replace the engine due to neglect.

[PRICEPLUS]

You become obsessed with it!