How do you find the balance between living life and saving money? With this blog about saving money and increasing my net worth, it’s easy for me to get carried away and stop spending money on things that are enjoyable in life. For example, when my wife mentioned that she wanted to go on a nice (aka expensive) vacation this year, all I could think about was how much this vacation was going to cost and that vacations are a money pit! Isn’t money the means to buy the things that you enjoy? Perhaps financial freedom is more important to me than the material things that it can buy. But when is saving and financial planning considered excessive?
On the other end of the spectrum, I have so many friends who are around my age (27), and so deeply in consumer/student debt that it will take them at least 10 years to pay off at their current salaries, good salaries at that. Yet these same people still go out for lunch every day, party every weekend, and lease brand new cars every 2-3 years. To each their own, but in my opinion, this is the extreme in the opposite direction.
What is the solution? Where is the balance? Perhaps setting a savings goal for the year, setting up automatic withdrawals, and spending any excess money above savings on the things that make life enjoyable to the individual.
Enough with this philosophical rambling, time to get back to financial optimization. :) Until tomorrow…