Tuesday, August 3

Should I save Money?

Honestly, I do not know but I do it anyway. Why? Because of the too many articles that I have been reading about what happens during retirement when health expenses rise exponentially and income is almost negligent. There are too many ‘what-ifs’ that are driving me to save money for my future. Following are 3 examples from people I know and their money saving model.

  1. Save, save, save:
    • Saves 70% of the paycheck
    • I don’t have binge shopping sprees. Almost all purchases are well planned.
    • I indulge myself with Lunch\dinners outside at least twice a week and Starbucks- maybe twice a month as so on.
    • For any purchase over 100$, I sit with the decision for a day before I buy it.
    • I am not cheap but I do not spend on unnecessary stuff.
    • Summary: I am on track for retirement. I wish to retire by the time I hit 35 or 40. I do not wish to work for all the good years of my life. I have a huge bucket list that I must get started on soon.
  2. Save first, spend later: Saves 40% of his paycheck
    • This is my husband’s style of saving. He puts away a part of his paycheck into savings as soon as he gets it.
    • He makes it a point to spend the rest of it even if it involves things that are marginally in the ‘I may want this’ list.
    • Thanks to this, we indulge in a lot of trips and travels.
    • Summary: He is on track for retirement as any other human being. He is happy today, he will be happy later. His wants are modest and he has no early retirement plans.
  3. Why save? Future shall take care of itself. Saves 0% of his paycheck.
    • This is a friend’s style of money management. Every time he had a salary hike, his lifestyle had a corresponding upgrade.
    • He always has the latest gadgets, fancy cars, expensive hobbies.
    • He also has the finest Steaks and lamb shanks for lunch\dinner every day.
    • He leads a credit based lifestyle.
    • Summary: He has no plans to start saving for future. He believes that no one knows what the future holds and he is happy to live in the present.

Each of us believes that our money management skills are better than the skills possessed by the other two. All of us are happy with our lifestyles and maybe at the end of the day, that is all that matters. Being content in our own money managing skills and not having to worry about the future.


  • Getting freedom and retirement from saving is not a scalable idea and that’s just going to limit your opportunity.
    If you are in US for 10 years and not a millionaire (having a bank balance of a million dollars) you are probably doing it all wrong. If you want to retire by 40 you need a person who has done that to guide you. But glad that we all share the same mindset. Yes jobs are great but freedom is priceless.

    • shalady

      Simple path in to worry free finances
      1. Earn and Save
      2. Invest the saved amount.
      3. Enjoy worry free life with the fruits of the investment.
      So the first step is always savings. what do you think ?

  • Ramana

    Hi, came across your blog on ChooseFi group mobile plan in mobile plan suggestions. Yes, I was of the same mentality as yours that savings is enough. But you need to invest aswell and I think in your other article you did mention that you were investing in stocks. Rather than individual stocks investing in mutual funds like Fidelity/Vanguard would give give you better returns in the long run.

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