We’ve all heard and understood the wisdom of Saving for a rainy day. It’s important to have some cash put aside for unforeseen eventualities. And some for the things you know are coming well in advance, like a child’s university years or your own retirement.
But some people take it a step too far. Living frugally can be a habit that’s hard to break away from, even when you have a comfortable cushion of cash to cover your expenses – both predicted and unexpected.
If you’ve ever been accused of being a Scrooge, take a look at our list. Here are five signs that you might be saving too much money:
You Don’t Enjoy Your Money in the Short Term
When you have a long term financial objective, you can miss out on the joy your money can give you here and now. Nothing is certain in this life. Any one of us could drop down dead tomorrow. Whilst it’s important to look to your future financial security, saving too much money could mean missing out on fun and happy times with your friends and family in the present. Set aside some of your monthly income as disposable rather than assigning it to savings. You’ll enjoy your life more now and still be able to save for the future too.
Your Social Circle Has Shrunk
If you’re constantly saying no to social events that divert money away from your savings, your social circle will begin to shrink. Not only will this mean missing out on exciting holidays and fun occasions with your nearest and dearest. It will also mean missing out on the opportunities that come from a large network of friends and acquaintances. These opportunities can be of emotional, personal and financial benefit depending upon who you rub shoulders with.
You’re Blind to Other Financial Opportunities
If save, save, save is your mantra, you may be missing out on other opportunities to grow your wealth. You should be getting interest on your savings if you have them in the right account. But, with interest rates currently low, you could be making more of your money through shrewd investments. That could be stocks and shares, property, resources or even in a start-up company. No investment comes without a degree of risk but opportunities as well as savings are definitely worth your consideration.
You Neglect the Necessities
When you’re in a saving mind set, you may begin to question all of your outgoings. But you need to stop yourself short of neglected the necessities. Insurance is an easy expense to cross off your list but completely counterproductive if you needing to make big pay outs in order to buy a new car or repair your home. Similarly, maintaining the assets you do own is essential in order to prevent further expense at a later date.
You Feel Anxious About Spending Money
If you’re financially comfortable but you still feel anxious about parting with your cash, you may have taken frugality to an extreme. It’s not healthy or practical to count your sheets of toilet paper or do a two hour round trip to visit a cheaper supermarket. If saving money is often at the forefront of your mind and it’s making you worry, take a step back to reassess your situation. Your saving habit may have gotten out of hand.
Saving money is something we’re all taught to do. And it has countless advantages. It means we don’t have to live on credit. And we have the reassurance of that rainy day money. But saving too much can have a negative effect on your life, your prospects and your relationships. Saving, as with all things, is something that should be done in moderation.
About the author: Kate Thora is a passionate blogger who spends most of her free time with her family. She is currently working as a Content Specialist at BizSet.com. You can find out more about her on Twitter.
The post 5 Signs You Might be Saving Too Much Money, Extreme Frugality appeared first on Frugal Family Adventures.
