Finding The Balance In Spending And Saving

Okay, we get it. A huge portion of the population has managed to survive to this point with virtually no money management skills. Now that the cat is out of the bag, there has been a spotlight shone on the lack of financial literacy and everyone is on the band wagon to manage their money better. Of course that is a good thing, however we are a nation that seems unable to live moderately. We either eat too much, spend too much, drink too much or work too much. With so much emphasis placed on eliminating debt and saving money, you can bet that some people will shift their priorities to the extreme. While some may say that you can never save “too much” money, it is important to remember to find balance in life.

How Much Is Too Much?

If you were to take a survey of 100 people and ask them how much money is too much, you would likely find that most people think you can never have too much money. As we all know money cannot buy happiness therefore it probably is possible to have too much money. After all, if you aren’t using it surely someone else could. In reality there are very few people in the world who have reached the “too much” level of wealth. Therefore the average person has a long way to go before they have to worry about exceeding their savings quota.

Get Started

The real challenge facing most Americans today is starting their savings. With many people losing thousands of dollars in the recent recession, rebuilding their savings could take years, effectively making the too much theory a moot point. If you do not already have a well padded emergency fund, retirement fund, rainy day fund and what could I possibly do with this money fund- then by all means do not worry about saving too much money at this point.

Why Balance Is Important

If you have ever known a person who compulsively saves you probably know what I’m about to say. For some people it is the act of saving money that is addictive versus accumulating wealth. That means that long after they have acquired enough money to last a lifetime, they continue to scrimp and save as if they were penniless. This type of obsessive saving can limit the quality of life and make it difficult for savers to part with their cash under any circumstances. Finding the balance between saving for your long term financial security and spending to enjoy the present is needed to find overall happiness. Remember you can’t take it with you, so you might as well enjoy it while you are here.