Managing your financial life is not just about money.

Is there such a thing as over-saving?

A new client recently asked me if there is such a thing as “over-saving.” Wow, I don’t get that question very much. I had to stop and think for a moment before I answered…

Saving young means more options later!

This client I mentioned above was in her thirties and had very low expenses in relation to her income, so she had a phenomenal ability to save.

If you do happen to save a whole bunch when you’re on the younger side, then you are opening up a lot of possibilities for your future! It could mean any number of things as you get older, allowing you to:

  • Retire earlier
  • Work less as you get older
  • Enjoy your retirement (You’ll have money to spend!)
  • Have less pressure to save later on
  • Have better ability to fund college with cash instead of loans
  • Less stress (maybe a better night’s sleep?!)
  • Gift more to your children/grandchildren
  • Create a safety net in case of illness or disability

I would call this “having options!”

It’s OK to have some fun in retirement

Some people are savers by nature, and have a hard time switching from save mode to spend mode. It’s not my job to judge what anyone does with their money, but in this case, I think the occasional  “hey, did you think about maybe spending it and having some fun” advice is in order. You’ve worked your whole life earning, investing, and saving, so it’s OK to enjoy the fruits of your labor!

In general, American’s don’t save nearly enough…

We’re proud to say that most of our clients happen to be great savers! Which makes sense, because great savers tend to be the type of people who work with a financial advisor to make sure their financial future is all set. We’re glad to share the importance of saving and planning for finances at McNamara Financial Services.

So, is there such a thing as over-saving? In short, no, you’re probably not over-saving even if you think you are. I look forward to helping more people create a life of options by saving the right amount at the right times!

By: Alyssa McNamara Reed, CFP®

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