Save or Spend???

In response to The Bucks question about saving for retirement or s
living for the here and now......

This is a tough one... A damned if you do and damned if you don't.

Scenario 1: Live life to the fullest. Buy that new car. Eat out all the time. Travel. Don't save a
penny.

Scenario 2: Don't eat at that fancy restaurant because it costs too much. Max out on your 401K
plan. Vacation close to save on money. etc...

Somehow we need to find a balance between the two. Life is short. You never know when our time is up. Therefore, enjoy what time you have. Try not to have regrets. However, too, don't be stupid out it! You can enjoy life without borrowing money or maxing those credit cards to do so.

I advise you to save on a regular basis. Usually a pre-tax plan through an employer is the best. It comes out of your check before you get it. You don't miss it. Along with that, set up a simple saving account or money market. Keep in it 3-6 months worth of money to cover bills in the event of an accident. If you need to dip into it to enjoy yourself at Disney, OK. Just make replacing that money the priority when you get back.

Along with that make sure your life insurance is adequate. If so, then what you don't have saved will be replaced with that coverage in the event a spouse passes. Community is great, but we shouldn't depend on others to take care of our families.

Finally, keep debt low. Mortgage ok! Maybe a short term car loan. Not a car payemt equal to a house payment though!!!!! Credit cards..... tear all up except one you take on vacation or keep in the event of an emergency. You find that by having very low or no debt you'll actually have more money from your current paycheck to spend to enjoy the here and now. CUZ YOUR NOT STILL PAYING FOR THAT CHEESEBURGER YOU ATE 3 YEARS AGO AND TRYING TO HAVE MONEY TO ENJOY LIFE NOW!
If you want something, buy it! Just pay cash. In this way you'll live life, get the things you need and want, but do so with lower stress and possibly save along the way too.

You can do it! Try doing both. If you want to eat at Ruth Chris, go ahead. Just don't charge it. By the way, you know that new putter you want.......... How about a car for that daughter.......