I just popped open my ING Direct account this morning to find this quote…
“There’s no such thing as Saver’s remorse.” -ING Direct
It is pretty clever and generally I think it is true. You could argue that some people are a bit too extreme about saving money that they fail to live today, so that they can have plenty to live on in the future. To me, maintaining this balance has been tricky at times, but a key to doing this whole money management thing the right way.
I want to enjoy life now, while continuing to save for the future, so that I can enjoy life then as well. From the people I meet, I would say the break down goes like this…
- 70% spend it all (or most now) with little thought towards the future.
- 20% have a good balance of saving for the future, while enjoying life today.
- 10% practice extreme frugality without adequately living (IMO) in the “now”.
For the first 90% I don’t think they would have much of a chance of having Saver’s Remorse, but I wonder about the last 10%. I guess it depends what their goals are, but I would be sad if I got to my deathbed and had a full bank account, but I never enjoyed it – either by giving it to bless others, taking a vacation once in a while, or going out to a nice dinner with my wife.
If you are interested in a good story that helped me put this in perspective, read the Mexican Fisherman Story.
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I wonder if there is Saver’s Remorse when we die and we see all the opportunities we missed to help others because we were so concerned about comfort, security and padding our bank account? Just a thought.
I’m interested in that 10%.
Are they in that group based on actions now or are they only identifiable after the fact, i.e. when after they retire they realize they have more than they’ll ever need?
The recent articles on the “too much” never really mention what that actually is. Even the replacement income requirements are not carved in stone, a low income earner may need more than 100% replacement as they might have been spending little while working, but now want to travel and enjoy new things, to 40-50% for a very high wage earner who barely touched their income, but worked for its own sake.
Interesting ideas to ponder.
I started experiencing savers remorse at 25 years old. I worked my butt off for 3 years and took some investment risks that paid off. I was absolutely SICK of looking at my bank account savings and questioned outloud “WHAT IS IT ALL FOR!” Work, and money that is.
So, at age 26, I decided to do a little bank account obliteration and put down 30% on a $600,000 piece of property a while ago, just so I could feel the pressure to work again. Nothing like seeing your bank account shrink by $180,000, and having a $420,000 mortgage to light a fire!
I promised myself then I would never have savings remorse again!
Yes there is. In Zimbabwe, for example, they’re experiencing hyper-inflation. For them saving a today instead of spending it means that tomorrow it’ll purchase less. Inflation (in general) kills savings by diluting later purchasing power.
I have never been able to successfully save for the long term. That is why I am here now—to learn. It would be a nice change to have saver’s remorse rather than buyer’s remorse.
saver’s remorse does not exist. this is just an excuse that spendthrifts use to justify their bad money management habits ie i gotta live for now since i dont know what will happen in the future
I think it exists. I know I have put some money away and have thought that maybe if I took one month off this month with savings I could save up for that item I want to buy or trip I want to take now. It’s hard but will pay off in the long run.
I agree with Jason—we definitely have to think eternally when it comes to money. We can’t take it with us, so what will our financial legacy be? I hope mine will be part giving-like-crazy, and part blessing-my-kids (who I haven’t met yet!).
This summer was in savers mode upping my emergency fund and ran into an old friend that moved into town. In the course of catching up he said lets do lunch sometime and gave me his work info. I have been brown bagging it all summer so let it slide always meaning to get back to him. Last week a drunk driver hit him head on and he is critical (but stable condition). He will have several more surgeries and recouping but I am definitely planning on taking him out for lunch and catching up on old times. I will even splurge and have a coke and desert to boot.
Saver’s remorse doesn’t exist because of a simple truism:
The best way to double your money is to fold it in half and put it back in your pocket.