• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Your saving habits strain relationships

Savers are often frugal, but could that frugality cause tension with friends or family?

“If you’re too good at saving money that it’s causing you to all of a sudden forego life experiences or perhaps even delay purchases you absolutely need, this could be a problem in your relationship,” Yang said.

You can overcome this by openly discussing financial goals with your partner and agreeing on a budget that allows for both saving and life experiences. Allocating funds for shared experiences can strengthen relationships without jeopardizing financial security.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

Life experiences pass you by

As Ferris Bueller told the audience in the iconic 1980s film, Ferris Bueller’s Day Off, “Life moves pretty fast. If you don't stop and look around once in a while, you could miss it.”

Extreme savers often resist simple pleasures, like dinners out or occasional vacations.

Yang explained that this lifestyle can lead to burnout and a monotonous routine, where “time seems to pass you fast and all the days start to blend because we weren’t experiencing anything novel or new.”

To counter this, he emphasized the importance of balancing saving for the future with actually living in the present. He recommended setting aside time for things like occasional road trips or concerts with friends to enhance the quality of your life without breaking the bank.

You’ve surpassed your financial goals significantly

Have you already exceeded your retirement savings targets but continue to save aggressively? By using Fidelity’s guidelines, Yang explains that at age 40, saving three times your salary means you’re on track for retirement. “If you’re double these benchmarks … then I would argue that you are probably saving too much money.”

It might be time to reassess your financial goals. Determine your “financial independence number” — a key component of the financial independence, retire early (FIRE) movement — by calculating how much you need to retire comfortably, Yang said. If you’ve reached your number or exceeded it, consider adjusting your savings rate to allow for more present-day pursuits or enjoyment.

Meet your retirement goals effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

You’re obsessed with saving small amounts

Have you ever driven a few extra miles to that gas station where the price is a few pennies less per gallon? Yang describes this behavior as spending “so much of your free time to save an inconsequential amount of money.”

Yang referenced the concept of the “opportunity cost” explaining that “if you’re spending one hour to drive out of your way to save $5 on gas, it’s generally not worth it.” Instead, focus on high-impact financial decisions and activities that genuinely add value to your life.

You’re neglecting health and essential needs

Yang’s final symptom might be the most important: Savers who delay necessary expenditures, such as medical care or essential home repairs, to save money. He admitted that “some people are going to want to avoid the doctor or perhaps put off a health-related problem because they fear how expensive it’s going to be.” This can have serious long-term consequences on your well-being.

Prioritize spending on health and safety. Regular medical check-ups and essential maintenance are investments in your future, not expenses to be minimized.

Finding the right balance

Aggressively saving for retirement is smart, and going the extra mile to have something extra in retirement is laudable. But as Yang said, over-saving often stems from a fear of being without or past financial hardships that can lead to over-corrections.

In his video, Yang shares a personal anecdote about his father: “Since he grew up in poverty… it’s just always been ingrained in him that he needs to save every single penny and dollar that he could.” Recognizing these patterns is the first step toward change.

Sponsored

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. Advisor can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor now.

Chris Clark Freelance Contributor

Chris Clark is freelance contributor with MoneyWise, based in Kansas City, Mo. He has written for numerous publications and spent 18 years as a reporter and editor with The Associated Press.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.