Money is a funny thing.
It provides for a roof over my head, food on the table, movie tickets, concert tickets, my car, and gas. Plus, anything extra I feel like paying for. It’s a system for barter between consumers and businesses. I’ll give you this for that. The decisions I make are based purely on value.
And don’t forget about building wealth.
As a young professional, I’ve noticed how many major purchases are ahead of me: car, house, kids, education, etc. These are purchases made in addition to mandatory living expenses. They don’t all have to happen. I could stay single for the rest of my life, live in an apartment, and have no kids.
I’d save a ton of money & my happiness would plummet.
Is that the life I want to live? Am I saving too much money? Should I be having tons of fun and only saving 20% of my paycheck? Some would say that’s not even a question. But for me it is.
I don’t go out to eat a lot, I don’t go on extravagant vacations, I don’t drive much outside my normal commute, I don’t have cable, I don’t spend more than $40 a week on food, and for fun I (mostly) do free things on the weekends. Am I sacrificing fun for saving? Maybe.
I realize there are millions of people who can’t save a penny. They live paycheck to paycheck. And sometimes they don’t eat. I can’t imagine what that’s like. I’m fortunate I’m able to save the money I do. I wish I could save more. So, why am I confused.
I want to know what I’m saving for? An uncertain future?
It seems like being young and “financially free” is both a blessing and a curse.
What’s your take on saving for an uncertain future when you’re young?
Michael Adams
Michael Adams is a 25-year old food entrepreneur and founder of Gredio and Green Mountain Mustard. He writes about personal improvement, marketing, bootstrapping his startup, and life's general observations. Follow him on Twitter.
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Sometimes you feel that way even when you’re are older. I’ve always been a bit of a saver and I’m cheap or frugal or whatever you want to call it. I am generous but I am always watching on how to save a buck or two.
I have money in many different institutions and several times along the way I’ve asked myself, really, how much do you need and for what? Well, you only ask yourself this (I think) when you actually have it. If I didn’t have it, then I would know EXACTLY “for what”.
So, the answer is, you save money for the unknown; the what ifs.
You never know if you’re going to get sick and need to pay for medical bills. You never know when and if you will buy a piece of property and with that comes a ton of unknowns and money is required for that. You never know if you’ll meet someone, fall in love and get married and the unknowns with that…what if your new wife is a spend thrift? You’ll need money to cover up her messes
If you think you have too much in the bank, make sure you’ve met the limit on your 401k and your IRA and if you still have too much, buy real estate.
Hey Yvonne,
I don’t disagree at all. It’s interesting when you’re young because there are so many things you could be doing with your money. But, as long as your saving for something, you should be in the clear.
Thanks for the continued commenting!