b&b70 If you have savings in your 20’s, are you doing it wrong?
I don’t know why I let Elite Daily articles rile me up, but this one called, “If you Have Savings in your 20’s, You’re Doing Something Wrong,” really struck a nerve. Link bait or not, it started a firestorm of comments and even a response article from MarketWatch.
After calming down and letting my Pam-Hulk subside, I started thinking about all the people who at the very least want this article to have some truth to it because they live this way.
So let’s go deep this week and take some time to unpack exactly what the appeal is of letting your 20’s be carefree and savings free.
Pam: Refusing to enjoy the money that you’ve worked to make –why are you making it then? What is the point of earning if you’re not planning on spending it in a way that will make you happier? Whether now or later
Pam: I have seen people who’ve saved up a certain amount of money and the idea of spending it at all freaks them out. It’s just like, “okay, it’s there. It’s always gonna be there for me. And, that’s it. I’m just not gonna spend it ever.” And that breaks the cycle. That kills the cycle, essentially, of you’re saving this to do something with it. You’re not saving it to look at it.
Pam: Compound interest only works if you’re literally doubling your money, or you have a bunch of money to start off with.
Pam: Saving money also isn’t just about working towards a goal, or taking care of these potential emergencies that can happen, and I feel like we’re always saving for emergencies, and one thing I wanna re-emphasize is you’re also saving for opportunities. You’re also saving for you don’t know what’s gonna happen next, good or bad, so have the money to do it.
Pam: Don’t be afraid to spend money, just be conscious of where it’s going at all times.
Pam: Try this exercise. Do it for like a week. Before you go and buy something, just ask yourself why before you purchase it. You don’t have to buy it or not buy it. If you put it down or don’t put it down, that doesn’t matter. Just ask yourself why. What is the reason behind it? And it could just be “I’m hungry.” It could just be “I’m thirsty.” It could be, “Oh, I just feel like it.” But just think about it and be more aware of why you are spending the money that you are spending, because when you connect to that and you start questioning that, then you’d be surprised what your priorities actually are. And you’ll start to spend money on what really, REALLY, matters to you. My big philosophy with Brunch & Budget is: Indulge in the things that you value, and ignore the rest. Spend lavishly on things that you really care about. Everything else shouldn’t matter as much.