facebookI’ve been saving 65% of my income monthly. Self employed with 2 kids. I felt that I’ve been saving too much and I’m starting to lose my motivation because basically I have no social life? Should I be more relaxed with my savings? - Seedly

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Anonymous

14 Oct 2020

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I’ve been saving 65% of my income monthly. Self employed with 2 kids. I felt that I’ve been saving too much and I’m starting to lose my motivation because basically I have no social life? Should I be more relaxed with my savings?

Should I be more relax on my savings e.g reduce my savings and spend a little more? 35% of my income for all expenses including my kids, my needs, my wife and bills are making myself no-life.. doing it for 1 year already.

Discussion (16)

What are your thoughts?

You need to set an entertainment budget. No one can survive for long without doing something to reward themselves.

For me, in addition to my own allowance, I set 500 aside monthly into a Rewards Savings goal, which was initially meant for travel, and buying toys / gadgets, or basically what I want.

I have dipped into it to put money towards my rstu or buy stocks too, but the main thing is I save it to reward myself.

I don't think saving needs to be extreme, and even with a simple budget of few hundred dollars, you can make certain things work out. For some people, it's as simple as say having a beer a week. Or a movie a month. Or bubble tea twice a week.

And "happy spending" says "make it a treat" (once in a while) is one of the five ways spending money can make you happier.

Elijah Lee

Elijah Lee

05 Oct 2020

Level 18·Independent Financial Advisor at Phillip Securities (Jurong East)

Hi anon,

As with pretty much most things in life, moderation is key.

You have to ask yourself, what are you saving for? Is it for the purpose of early retirement? A second property? A sabbatical? Or just out of fear due to the current economic climate?

Then ask yourself, is it ok if I retire 2-5 years later instead of the original goal I set for myself? Is it ok if I don't get the second property that early? Can I do with a shoter sabbatical? (And if you have 12 - 18 months expenses set aside, it's quite reasonable and will allow you to tide over this current period if you lose your job)

And if you can live with this, then please, go easy on yourself (but it's not a license to spend recklessly). You can't bring money to the next life, so ensure you spend it if it's needed (but not to the extent of overspending as well)

I used to be an extreme saver as well, to the point of restricting myself to one meal a day and eating dinner at home. But after a while, I reached a point where I felt more secure with enough cash in the bank, and then relaxed a bit. I finally got into the habit of buying a bun for breakfast instead of relying on office milo, and occasionally had a better meal at the coffee shop (this meant upgrading from economic rice to say, a chicken chop pasta or something).

(Somewhere along the past few years, I now treat myself by spending money on my investments; it's thrilling for me to buy into a stock, almost an adrenaline rush, but not everyone is like me, and you don't have to copy me either)

And its these occasional 'treats' that help frame things in perspective and remind me that things can and will get better but I have got to stop and smell the roses along the way. If I've had a long day, a Gong Cha won't kill my dreams of financial freedom, but it will make me feel a little bit better (never mind the sugar). But knowing this, I also don't drink Gong Cha unless I've felt it was deserved (either because of a long day, or a small success, or something similar).

So do yourself a favour and learn to let lose a bit. It'll be hard to live life like that, and if you continued this way, can you look back years from now and say that you truly lived?

(Oh, and reconnect to your friends please. Humans are social)​​​

I always ask myself this question: why am I working so hard to earn & I always ended up with the sam...

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