Asked on 27 Nov 2018
I'm not saying that you shouldn't save, but sometimes it comes to a point where is is so extreme
It really depends on what the individual definition of living comfortably is, and what is considered extreme.
Consider the following infographic:
Everyone would fall on different parts of the curve.
Understand for yourself what is enough, because beyond a certain point, it is after all, overconsumption.
Consider the hordes of shoppers buying clothes they don't wear and shoes they don't need, but only bought because it's on sale, or to fulfil 'shopping therapy' pangs. It might give an initial rush of excitement, but ultimately does not lead to fulfilment, but rather more doodads at home, and a further impact on environmental resources.
On the flip side, we could have a situation where a dad is not able to provide fully for the family, but still buys his pack of cigarettes at $10, because it's one of his comforts in life. That is a situation where they are on survival mode, but still not spending on the things that matter for the collective family unit.
At least for me, there is a bit of uncertainty where future price/education/health prices would go - so I end up building a nest egg in case of eventualities. If it turns out there are no disasters - then hoarding a bit too much.
Not sure best way to deal with this coz I don't want to be in spot of making tough choices on say education for kids / health treatment due to lack of money
Agree, in general. Hence there should always be a target for savings. You shouldn't be saving just for the sake of saving.
Some people prefer to suffer now, enjoy later, some people prefer to enjoy now, suffer later. Or some people prefer to be in the middle all the way. It is just a matter of preferance. There's actually no right and no wrong, just as long as you are aware of your own choice, the implications and don't regret it.
Save at your comfort level, however I always believe if one feels too comfortable then probably he/she is not saving enough, which is totally fine if you don't mind extending your retirement...
It really depends on one's family background/upbringing as well as how much income one is earning. If one comes from a very poor background and has suffered from poverty at a very young age, he/she has the tendency to want to save more because he/she is not willing to go through poverty again. Moreover, if one is earning only $1000+, naturally he/she would want to save more so that he/she has money during contingencies. Don't judge. Do understand everyone is different. Some have to make difficult decision because of their circumstances.
Yes, but if you keep spending on small stuff, you'll never be able to afford the big stuff (better furniture, better home, etc)