Saving is good but what about spending?

[MaskedMarvel]

You'll always hear people, including me, talking about saving. But what about spending? It's true that the less you spend the more you save but you still have to enjoy life right?

Let's say you work hard to save money every year for retirement because you know it takes a lot of saving to retire. What would you do if in your early retirement years you get cancer, which is most probable these days? I've knew some people who discovered they had cancer and within a month they passed away. Of course this is not often the case but it's a possibility.

So now what do you do? Do you change your lifestyle and live like there's no tomorrow? Or do you keep saving as much as you can? I think we should save up for at least one thing we would like to do before we die. This money should be in a high interest saving account. The reason for this is because it needs to be easily accessible at anytime. That way, if an accident happens and you can't fully enjoy your retirement then you have that accessible fund to at least do something special. Another good reason for this saving account could also be your emergency fund.

Another thing to do is once a month treat yourself. Go to the restaurant with your love partner, go to the movies, organize a dinner with some friends. Anything you enjoy but at a reasonable price because you don't want to blow your savings.

[tripods68]

If you knew you are going to die, I don't think people will fault you for spending even obscene amount of money. You need to take care of yourself and enjoy life to the fullest.

On the other hand, most people I do know (friends and coworkers) that were terminally ill prearranged their finances to make sure their loves ones are taking care. Most recently, a coworker of mine passed away few last Spring. She was diagnosed last November of last year and passed away last April. She spent the last few months in and out chemo treatment without success. Fortunately, her Pension has suvivor benefits continuance options that allowed her beneficiaries (only daughter) and two grandkids to received benefits for life. She owed nothing on the two house she owed outright and no credit card debt.
But i digress.

[GREENBACK]

I spend when I want to and on what I want to. I just don't have the spending "appetite" that a lot of people do. I think a lot of folks on this site have learned that the feeling of controlling their finances is better than any spending splurge. If I were given some fatal diagnosis I wouldn't be saying I wish I had done this or that but, yeah, I probably would spend a good deal of what I've saved. I say spend if you can afford to. If you can't....don't but know the difference.

[Pitman]

First off, I gotta say that Saving is not just good, but its a great. But with that said, I'll be lying to say that I still don't purchase a few things here and there. Granted I still budget whatever I decide to buy, and I make sure the item is on sale, and have a discount code handy, a little reward here, and there won't hurt.

[Broken Arrow]

The "What if you're going to die tomorrow?" is a popular but flawed argument for impulsive behavior. Chances are good that most of us will to survive to see the next day.

So, I think the better question is, "What if you're going to live tomorrow?" What then?

That said, I realize that some don't have that luxury, and everyone should adjust their plans according to their individual situations. But then, that's why personal finance isn't one-size-fits-all to begin with.

Live or die, I have a percentage of money now allocated to just having fun. At 6%, it's big enough that I don't feel like I'm missing out, but it's not so big that I feel like I'm endangering the rest of my budget.

[disneysteve]

We often talk about balance around here. You need to save and prepare for the future, but you also need to have a life.

Something else to consider, though, is that money you are saving isn't just for you personally. It is also for your spouse and family. If I were to die tomorrow, I'd want my wife and daughter to be taken care of. Of course, life insurance takes care of that primarily, but personal savings would be important as well, especially during the initial period after my death until the insurance payment was made.

This is just one more reason why living well below your means is important - to provide that balance. You need to have money to save, money to cover necessities like food and housing and such and also money to spend on fun stuff like dining out, vacations, gadgets, theater, etc.

[Ima saver]

I agree with disneysteve and BA. We don't buy a bunch of worthless junk, but we enjoy having dining out dates and driving sports cars.

[disneysteve]

Originally Posted by disneysteve

This is just one more reason why living well below your means is important - to provide that balance.

Also, it is why having a budget is so vitally important. You need to know where every dollar is going. You can and should make "fun" part of that budget. How much is up to you and will depend on your individual circumstances. It might be 5% or 10% or some other amount.

[michaelo]

I was once told that I should take my wife out once in a while, even if I thought I couldn't afford it. Because a few dinners, and nights out, is still a lot les expensive than a divorce.

This is just an example of how spending i some situations can potentially save a lot of money down the road.

Another one: Spending money on fresh produce and eating balanced meals to save on medical costs later.

Of course, there are no absolutes in life, and spending (or not spending) now doesn't guarantee a certain result. So, it shouldn't be used as an excuse to spend without reason.

~michaelo

p.s. We will be celebrating 19 years together in a few months, so I can attest to how well the first example can work.

[tripods68]

Originally Posted by michaelo

I was once told that I should take my wife out once in a while, even if I thought I couldn't afford it. Because a few dinners, and nights out, is still a lot les expensive than a divorce.

I find this comment from your friend very insightful. Wow!

[MaskedMarvel]

Wow a lot of good comments here, thanks guys. So it's all about personal choice and different people seeing different things in life.

[jIM_Ohio]

If you start saving young enough, then you can enjoy life before retirement and enjoy life even more once retired.

[Joan.of.the.Arch]

I think that the people who need to be told to loosen up and spend more to enjoy themselves are few and far between these days.

Honestly, I am as close to being a real miser as anyone I know, yet I have fun all the time, plenty of enjoyment, almost no stress, too many toys, too many clothes, too many kitchen gadgets, too many books, too many household trinkets, more of the conveniences than I can make use of, many thousands of miles of travel and outdoor adventure, a couple of wonderful hobbies, etc.

The "something special" one might want to do knowing that one is dying might have very little to do with spending money, anyway. Have you ever been with a dying person? Sometimes all they want is the least stimulation possible along with the comfort of family being with them. My friend who was dying said all she wanted was someone to hold her hand.

I want to be able to continue to have the good life in the future that I now have. Thus I save for it. I take my big ol' pile of money and say, "one for us now, one for us in the future," as I divvy it up....You share with your future self. Saving is not depriving oneself. It is giving to oneself.

[jIM_Ohio]

This is a multi pronged issue.

If a person is deep in cc debt I will argue that they enjoyed life well before they had the full means to do so, and this enjoyment may have came at the expense of prolonged enjoyment in later years in life.

If a person calculates a budget, is rigid about it, then takes any excess and saves it, I would agree this situation suggests that enjoyment is not high on the priority list.

If a person calculated a budget and calculates savings, allowing themselves to spend their excesses while still saving, then most here at this site would probably want to be in this third category.

An additional point is I can enjoy myself for the cost of a 6 pack and a 5 mile drive or even less. My best friend owns around 20 acres and he often has bon fires at night. My wife, kids and I go over to his house and hang out, have some beverages and talk about politics, religion, family and enemies. It is cheap entertainment, but that works for me. Sometimes we will just play games. Every played male vs female pictionary? I am entertained just watching my wife try to draw things. Doesn't have to be male vs female, as long as I can watch my wife draw (she has no artistic ability and a good sense of humor about it).

[Snowgirl]

As some other posters mentioned, it's all about balance for me. While I love to save, and want lots of money for my retirement, I also need to enjoy my life now. Since we have a nice income, it might be easier for US than other (but then, the retirement income we're shooting for is higher!), but we spend about 10% for "fun". Restaurants, movies, nice haircuts & hair colour, electronics, and the all-important (and $$$) vacation!