Kirby on Finance

Lately I’ve seen a lot of news reports saying that Americans aren’t saving enough. I’m not here to argue whether or not those reports are correct, but there are some suggestions out there that they incorrectly value America’s true savings rate. Either way, they’ve caused me to do a little thinking.

I read a lot of other finance blogs and I certainly get a lot of e-mail from readers of this blog who tell me terrific stories about how they’re saving 10%, 15%, and even 40% of their income each year. I can’t help but be amazed at the dedication that these readers must have. To save 40% of your income is something that very, very few can achieve.

My fear is that some of us may be saving too much. There’s nothing more important than saving for your future – except maybe for actually enjoying the life that you have now. Of course, all of this assumes that you’re not in expansive debt, are fairly young and in a situation where saving 10-15% is rather easy for you to do. If that’s the case, I’m wondering if maybe we’re putting too much emphasis on saving and less on enjoyment of the life you have.

I’m not trying to discourage saving, but what if you don’t live to retirement? What if you don’t live past this year, next week, or even tomorrow? I know that’s a weak argument against saving, but I think it’s a strong one for putting your saving and even your spending in perspective.

It seems like to me, the best plan is one that strikes a good balance between enjoyment of today and a enjoyment for the future. I’m not advocating a life of shopping sprees and wasteful spending, but only a life that keeps in mind that your happiness now is just as important as your happiness in the future.

Of course this argument doesn’t address the systemic saving problem in America, but I think it’s safe to assume that if you’re reading this you’re not just an average American.