Am I saving too much?I think everyone on the path to retirement has asked themselves this question at least once. I recently was reading a new blog for me called Lonnies and Sense and he asked the question when do I stop feeling like I’m living from paycheque to paycheque?
The answer is: never. Everyone always has that feeling once in a while, but the difference of when you have your finances under control is your doing it by choice rather than being forced to by your debts. This is a big change. You can stop at any time and change your mind on your goals at any time.
For example, my wife and I want to have another kid. I would love to take off some serious time when that occurs. So I ran the numbers I can easily save enough money in eight months to take off three months of parental leave. It would mean my retire at 45 would shift over to retire at 46 or later, but the point is I can make that choice if and when I want to.
So when the feeling strikes of “what is the point of it all?” Relax. Go outside for a walk, read a book, play, dance or sing. Enjoy everything in this world that doesn’t require a dime and recall your happiness. Once you are there you can be in the right frame of mind to adjust your savings rate, you might decide that you are pushing things a bit too far and need to ease up a bit. I know a few years back my wife and I had the feeling a bit too often, so we gave ourselves a raise in our spending cash of $40/month each. It made all the difference in the world. So some months I’m broke three days before I pull out the next cash. Others I’ve managed to only spend less than $20 in two weeks.