Believe it or not, this post is about the classic choice of saving vs spending. It’s a balancing act we all take part in each day. Should we splurge and be happy now? Or should we save and try to make ourselves happier later?
The tagline of this site is ‘Spending Wisely,’ and that fits in perfectly to this discussion.
Read the title of this post again. Guess who said it?
Like many of you, when I hear the word ‘sex,’ I think of Warren Buffett, who recently was hilarious on an episode of The Office.
Here’s the full quote:
It’s nice to have a lot of money, but you know, you don’t want to keep it around forever. I prefer buying things. Otherwise, it’s a little like saving sex for your old age.
While Buffett was referring to his business, it’s easy to translate this into our personal lives.
Mr. Buffett wasn’t saying that we should spend all of our money now. Far from it. He was simply stating that we shouldn’t save everything for later, that we have to balance the now with the later. If we save it all, then we are constantly working toward a goal and only at the end do we see the rewards.
Is that really how we want to live? 40 ‘bad’ years of saving for retirement so that at the end we can do all the things we always wanted? I don’t know about you, but I’d like to both save and spend so that I don’t feel like saving is a burden that doesn’t allow for some fun.
Delaying gratification is fantastic and most people aren’t able to do it. We see something we think we need, and without considering the impacts, we go for it. Why not just do it and worry about it later. Especially if it’s just going on a credit card!
Some people don’t have the discipline, in which case they should try and put off for tomorrow what they wanted to spend today. For those who already put off purchases and vacation, try not to overdo it. My Buffett wouldn’t approve.
But what does he know?