This is something I have heard quite a bit.
Sometimes when I tell someone that we try to save more than 50% of our monthly income, I am asked why we would want to do that.
Most of the time, they think we eat Ramen noodles everyday and that I must hate my life because I like to save our money. However, I think it's possible to both save money and enjoy your life, but not everyone I talk to thinks the same way.
Here are some of the reasons I have heard for why you should spend all your money when you're young (in italics):
- You can start saving later. – I have heard this quite a bit. Why should I wait to save later though when I know I can start saving now?
- You won't enjoy your money when you're old. – I'm not sure how I feel about this. Yes, I could spend all my money right now, but is having more material things something that I actually care about?
- Bad things are less likely to happen now. – Bad things can still happen though! What if I can no longer work one day, a medical issue arises, or something else bad happens?
- You have others to fall back on when you're young. – I don't have others to fall back on, and even if I did, why would I spend all my money just to mooch off of others?
Below are my reasons for why I think you should start saving now. [Read more…]