Asked on 30 Jan 2020
I have some friends who are okay with spending their entire paycheques every month and it makes me wonder if it's normal to not save at this stage in life.
Having gone through the 20s, I will say that my first paycheque was an eye opener because I suddenly found a lot of money deposited in my bank account. So I did spend quite a bit then (for a couple of months).
Then I realised that's not the way I should be doing things if I wanted to retire, so I changed strategies and started saving. Then I started to get serious about investing for retirement. Now, I barely spend 30% of my income, and 60% is invested or earmarked for investments. To me, my retirement is too important for me to lose sight of.
So well, in the end, you can spend your paycheque, but doing so just shifts retirement away from you. So you'll have to ask yourself, what do you envision your future to be?
I'd like to think that the general trend is to save money!
Though I feel it can be influenced by their upbringing and current financial situation.
Some individuals may not feel the need to save much if they've never had to worry about their finances?
Otherwise, most of my friends are pretty concerned about saving money!
We humans in general prefer to follow the crowd and social norms as we are genetically inclined to avoid being singled out from the group/clique. Many people who do not know what they want to do in their life may be inclined to do what their social groups are doing to continue to be part of the group as we all are social creatures.
Moving back to the topic of saving, what I see as normal (saving 70% of income) is plainly insane to most people. However, I see it as living an intentional life so it is your call to choose whether to follow the math (making use of compound interest and high saving rate to pursue financial freedom) or fit in the YOLO group. The choice is yours :)
You can ask yourself this questions. "Do i want to be rich or poor in the future".
If you want to be rich then find out what are the qualities and habits of the rich.
If you want to be poor then it will be the opposite.
Probably your friends do not have the concept of money and you can find out more about it and educate them. Learn more about personal finance and how to manage money.
Hope the above helps
I write cool stuff about personal finance and money-saving hacks here.
I follow a strict rule on spending money since my National Service days. For the most part, I create a budget and stick to it. Here is how I do mine: https://www.blog.pzl.sg/how-to-create-a-monthly-budget/
At the end of the day, it is about living your life and how you want your future to be. Personally, I prefer delayed gratification.
Here is everything about me and what I do best.