The cons of saving money

[robby]

Everyone is always talking about the good that saving money does. Just to have a balanced discussion, what are the cons to saving money in your opinion?

[Bruce Wayne]

Re: The cons of saving money

Erm, you don't have as much money to spend

[jmjj215]

Re: The cons of saving money

You think you're better than those who don't save money.

[sweeps]

Re: The cons of saving money

The biggest con is that you (or your kids or your grandkids) are only young once. You have to strike a balance between securing your future and living your life today.

[sweeps]

Re: The cons of saving money

Another one: There could be a financial collapse, and your paper wealth would become worthless.

[jmjj215]

Re: The cons of saving money

Another one: There could be a financial collapse, and your paper wealth would become worthless.

Because of this risk, I hold all of my wealth in the form of canned goods and ammunition.

It's all just personal preference.

[sweeps]

Re: The cons of saving money

It sounds like you're not diversifying your investments. Don't forget the duct tape and plastic sheeting.

[Gailete]

Re: The cons of saving money

>>There could be a financial collapse, and your paper wealth would become worthless<<

Although paper assets may be worthless, a person who has been savings and leading a financially prudent life will have less bills and hopefully a paid in full home. Even if we experienced a financial collapse, the credit card companies and mortgage companies will still be coming after you. How much nicer when everyone is wringing their hands in despair that you will at least not be thrown out of your home.

Gail

[sweeps]

Re: The cons of saving money

In a true financial collapse, dollars wouldn't be worth the paper they're printed on. If someone is $1,000,000 in debt, they'd happily (and easily) pay it off because the currency is worthless.

Even in a more realistic situation where inflation is very high compared to the savings rate, you're actually better off spending your money right away than saving it because the money is losing value.

[terry1156]

Re: The cons of saving money

If inflation comes back, saving money could actually cost you a lot of money. MSN currently has a good article talking about inflation in the early 1980s that hit 13% - I'm not sure how many of you remember that, but I do.

<a href="http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P133222.asp">Lessons from the days of 13% inflation</a>

[Bluezy]

Re: The cons of saving money

At this point in time, I'm unable to come up with any cons to saving money...unless you count having available funds for spending sprees.

[jmjj215]

Re: The cons of saving money

Even in a more realistic situation where inflation is very high compared to the savings rate, you're actually better off spending your money right away than saving it because the money is losing value.

I think the truthfulness of that depends on the item you're buying. Fast Food? Nope. That "depreciates" rather quickly A car, now you're talking - maybe.

[sweeps]

Re: The cons of saving money

I think the truthfulness of that depends on the item you're buying. Fast Food? Nope. That "depreciates" rather quickly A car, now you're talking - maybe.

True, up to a point. In a hyperinflation scenario, what buys you a Big Mac for lunch may only buy you a small cheeseburger for dinner.

(Fortunately all of this is academic. Hopefully no one is going on a big spending spree because of this thread. )

[jmjj215]

Re: The cons of saving money

That is true. Then guns and ammo (and duct tape and plastic sheeting) would be a much better investment.

[Snoopy2645]

Re: The cons of saving money

My only thought on cons of saving is where do you put it to keep up with inflation right now you are lucky if you can get 4% on a CD