Problem: This Guy Doesn't Spend Enough

Here's a question for Money magazine that about 95% of Americans could answer. It's from a guy who says he needs help spending money. Here's his question:

I'm 26 and I'm a compulsive saver. For the past five years I've saved over 70 percent of my net income, and I don't make that much. I track all my spending and have tried to budget "minimum" monthly spending levels, but I can't seem to meet them. I don't consider myself cheap, just frugal. And all my hobbies - music, games, sports - tend to be low-cost. Do you have any suggestions on how I can spend more money?

Let me start with this: this guy is my hero. He's a great saver, but to me, it doesn't sound like he's really depriving himself. He's got a decent handle on separating needs versus wants and desires. That's pure talent, I tell you. That sort of stuff can't be taught (at least to many). ;-)

My first thought was "get married." That'll take care of any excess he has built up!

Ok, before I get every woman in America comment on what a pig I am, let me say that was a JOKE. My wife is far more frugal than I am (I know, hard to believe). But there is some truth in the advice. It's most likely that he will marry a spender as it seems like in 9 times out of 10, financial opposites attract. I've seen it over and over again.

My second thought was "hey, here's my new best friend!"

Ok, now back to reality.

Here's what Money recommends:

Get way from your spreadsheets for a minute, go to a coffee shop and buy an overpriced café mocha, take out a pencil and paper and start listing some things you'd like to do or have always wanted to try. Daydream. Let your muse move you. Don't worry about cost, or whether you're going to hit your minimum spending target. Just think broadly, and think big.

Money then ends with some advice that I have to remind myself of every once in awhile:

It's important to remember that life isn't all about scrimping and deferring gratification until the future. You want to grab some gusto along the way too. (And why not help others have a better life as well? Have you considered donating to some of the many worthy charities?)

After all, what good would it be to live a life so focused on saving that when you're older you look back to find you didn't really partake of life's pleasures or develop any interests that you can enjoy in retirement. What a downer that would be.

I want to grow my net worth, save for college for my kids and for retirement, and so on, but I also want to have fun along the way. And yes, I have found things to splurge on -- that new Trek bike is calling my name. ;-)

Comments

[Dus10]

Well, he doesn't provide much information. Is he a homeowner? If not he should be... if he is, maybe he could get a bigger home. Does he want to travel? Does he have a four year degree? He doesn't make much, so maybe he should either get that degree, or if he has one maybe he should go for a graduate degree.

[LAMoneyGuy]

I wrote about this same column recently. I think the "expert" totally missed the boat. He actually gives him advice on how to spend money? Give me a break!

This advice is flawed. What if this guy is having the time of his life not spending any money? What if this guy is some totally relaxed surfer with nothing but a surf board and a wet suit to his name who hangs out on the beach all night after he gets home from his 9-5? What if he doesn't like "stuff" because he hates cleaning or because he doesn't like the polution caused by manufacturing stuff? What if his version of music isn't collecting 1000000000 cds, but playing some vintage guitar he bought at a pawn shop in college? What if his idea of a party is to get some of his guy friends together for vintage video game playing on a console he bought off ebay for $5? Without knowing this guy's values, Money's advice is idiotic.

[Dale G.]

There are a lot of things that money can buy. One of them that might really be precious to this guy if he did it is the opportunity to visit with people who are truly important to him. Maybe he should host reunions of family or friends. Rent a couple of cabins and invite kith and kin.

Perhaps since he's into sports, he'd like to sponsor a little league team.

Personally, I don't think that saving his money is a problem. But he needs to decide what he wants it to do for him. That kind of financial discipline and a few years worth of savings could buy him the freedom to do a lot of things that many of us dream of but few of us do. They don't have to be expensive things. What the savings gives him is the freedom to choose when he wants to work, and how.