Signs of Over-saving for Retirement

Focusing solely on saving for retirement may blur the line between needs and wants, neglecting current risks and enjoyment.

### Signs You're Saving Too Much for Retirement and How to Find Balance
* 💰  When you focus too much on saving for retirement, you may lose sight of **distinguishing between needs and wants**, putting off essential spending for the present.
* 🚑  Neglecting health and safety, such as **avoiding medical check-ups**, **eating unhealthy foods**, or **driving an unsafe car to save money**, can have **serious consequences**.
* 🏦  As you progress through life, your lifestyle naturally expands, so it's important to **strike a balance between saving for the future and enjoying life now**.
* 🦸‍♂️  For financial mutants who tend to be overly disciplined savers, it's crucial to find a middle ground and **not be too frugal**.
* 🩺  Solutions include **not cutting corners on health and safety**, having **appropriate insurance**, driving **safe vehicles**, and maintaining a **realistic view of needs versus wants**.
* 🎉  Enjoying the fruits of your labor by creating educational opportunities, making lasting memories, and finding a **balanced approach to lifestyle inflation** when receiving pay raises can help you achieve a **healthy balance between saving and living**.

[Music] The third sign that potentially you're saving too much for retirement: the line between what you need and what you want begins to get blurred. You become so focused on the dollars and cents that you lose track of things that you actually need to spend money on and things that you think you just want to spend money on. Yeah, we put together a list 'cause you could be a great saver where you are definitely taking that little bit of today for that great big beautiful tomorrow. But if you're not asking yourself, Hey, how do I risk my life? Do I need to buy life insurance, term life insurance for my loved ones? Do I need to make sure my health insurance reflects what we have going on in our life? I don't want you to be so good at saving for the future that you're not kind of looking at the risk of the current moment as well. How about this: you refuse to go to the doctor because, Oh, it's just a waste of money.

I'm not going to eat health foods 'cause I can go get very unhealthy foods at much lower prices. Or maybe you say, Hey, that car, it hasn't broken down yet, no reason will we replace that, and it actually turns out to be not a safe vehicle for your family. If you begin having those kind of conversations and noticing those sort of things, you may need to flip your mindset. I would argue those are things that you potentially need to do, not just things that you want to do. Yeah, and this one, this one frees me to say, a lot of times I say, be careful of your lifestyle creep, but there is, there is. I just want you to know this as you progress through life, as the decades go, your lifestyle is going to expand. I mean, it's just a natural thing. There's a reason we used to talk about tight wide nation, we are proud of it, but now we traded in our tight wide cars because we just, we know it's just not healthy to keep on that. Don't be trapped to where you're always

being so tight or disciplined that you're not actually giving a little bit to the ones you love to create memories and do things now. Look for most people we're only talking about financial mutants here most people do have discipline problems but I think sometimes US Financial mutants we have discipline on the other side meaning that we come off a little too tight don't keep it that way. So what are some potential Solutions don't cut Corners when it comes to health and safety recognize what are the things that I need to be doing appropriate Insurance safe automobiles appropriate maintenance on the things that I spend money on versus is what are the things that I just want to be doing okay upgrading okay having nicer things moving into luxurious Brands those are not the same so make sure you're realistic and you recognize that and we talk about and this sounds so simple to say Enjoy your success I think there's nothing wrong with creating educational opportunities you know if you want to help out with education needs of of loved ones I think

there's nothing wrong with creating blossoming memories. Look, we know the research. If 80% of millionaires are first generation, that means the stats show that 70% is gone by Generation 2, 90% is gone by Generation 3. You ought as might as well be a part of how you're going to spend your money. Make those great memories. Take the family on vacations. Do things to encourage education. Be a part of that. And then also, what are our thoughts when people get pay raises? Is there a balanced way on how to do this? Yes, I feel like what people often do is one of two things. They get a pay raise and either all goes to lifestyle or all goes to savings. I would argue that neither of those are probably prudent at the extremes. What I would say is, if you get a pay raise, there's nothing wrong with, Okay, I want to take 60% of that increase and that's going to go to increased lifestyle, but 40% is going to go to

increased savings, or maybe it's the other way around for you, but that way, not only are your savings and your behavior increasing, but so too is your lifestyle, so that you can begin enjoying some of the fruits of the hard work that you've been doing thus far in life.

Sign #3 That You’re Saving Too Much for Retirement!

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Your focus on saving for the future may blur the line between your needs and wants, potentially causing you to overlook important expenses like insurance and healthcare.

Over-saving can lead to neglecting current risks and essential purchases, such as safety and health needs.

As you progress in life, be mindful of lifestyle expansion, but don't become trapped in a mindset of constantly denying yourself present necessities.

Balancing Financial Discipline and Enjoyment

It's common for people to struggle with finding a balance between financial discipline and enjoying life, especially when it comes to creating memories with loved ones.

One potential solution is to prioritize health, safety, and appropriate maintenance while being realistic about the difference between needs and wants.

Additionally, it's important to not feel guilty about enjoying the success and considering educational opportunities for loved ones.

The Impact of Generational Wealth and Pay Raises

Generational wealth statistics show a decline by the third generation, emphasizing the importance of mindful spending and investment.

When receiving a pay raise, a balanced approach of allocating 60% to lifestyle and 40% to savings is recommended, instead of putting all into one or the other.

This strategy promotes financial prudence while allowing for an improved lifestyle.

The Relationship Between Increased Savings and Lifestyle

Increasing your savings can lead to an improved lifestyle, allowing you to enjoy the rewards of your hard work.

This positive financial behavior can result in a better quality of life and the ability to indulge in the fruits of your labor.