This article was originally published on Fool.com
WASHINGTON, DC Theres a thin line between informed contrarian opinions and people just trying to screw with your emotions.
Takethis recent article, called, If You Have Savings In Your 20s, Youre Doing Something Wrong.
Oh, boy. It deserves a rebuttal.
The article begins with advice the author received from a friend. Dont save money. Make more money, he told her.
She explains life before this moment:
Before this piece of advice, I was frantic. I was always doubting and always feeling guilty. I lived in the most exciting city in the world (also the most expensive) and had yet to experience it.
I was trying to save, which meant trying not to eat. I wasnt going out with friends, had yet to go to a club and had never seen the inside of a taxi.
I couldnt enjoy my life because I was too busy worrying about my bank statement. I was too busy watching my savings instead of savoring my youth.
OK, young people should see the world, meet people, and learn new stuff.
But, two things.
- If you cant enjoy time with friends without spending all your money, youre doing it wrong and your friends dont actually like you. People have been enjoying themselves long before $65 brunches were a thing.
- The decision isnt between saving or not saving, but finding a balance between the two that lets you enjoy life while being smart about your future.
Now, heres a rebuttal to some of the authors points about not saving in her 20s.
When did our 20s start to feel like our 40s?
Specifically around age 25, when your prefrontal cortex becomes fully developed and youre able to make better decisions about the future consequences of your actions.
What memorable experience does money in the bank give you?
To think of a few
Waking up at age 63 with a sore back and saying, You know what, Im too old for this. Time to retire to Florida and watch House of Cards.
Getting laid off and not wondering how youre going to pay bills this month.
Giving your kids the same opportunities your parents worked their butts off to give you.
I imagine those will be memorable experiences.
[Parents] want us to save because it provides us with a safety net, but thats exactly why weshouldnt. Their need for us to have a safety net is just a giant metaphor for the difference between our parents generation and ours.
Another possibility is that theyre sick of being your safety net.
When you die, you cant take your money with you.
You probably wont die in your 20s, so dont spend too much time thinking about this.
Peoplewho aresaving in their20s arepeople who dontset theirsights high. Theyve already dropped out of the game and settled for the minor leagues.
This is actually a good analogy. Most major-leagueathletesgo brokebecause their spending ambitionsare so detached from their income reality.
Everything works out, and if youre smart, able and had a job once, youll have one again.
The time between now and things working out can be miserable if you dont have savings. More than likely youll rely on someone who did save money, and pay them a 20% interest rate.
When you have something to bank on, you have nothing to reach for.
Other than savings. You can reach for your savings and use it fund whatever you need or want.
Those who dont plan for the future arent planning for their death.
People who plan for the future arent planning for their deaths either. Theyre planning for retirement, tuition, broken down cars, a new roof, a broken ankle, and a million other realities everyone deals with.
When youre saving for yourself, youre refusing to bet on yourself.
By saving, Im betting that lifes expenses wont perfectly line up with my bi-weekly paychecks. Its a bet with a 100% likelihood of paying off.
Youll regret the experiences you didnt take, the people you didnt meet and the fun you didnt have.
Another thing youll regret is needing a new muffler and having to put it on your credit card or beg your parents for money.
When you care about your 401k, your life is just k’
See if your doctor accepts this joke as payment when youre 82 and cant afford an office visit.
Refusing to give yourself the luxury of enjoying your money negates the whole point of making it.
Money buys more than luxuries. One of the best things savings provides is control over your time, which is actually the best way to see the world, meet people, and learn new things.
Were not trying to live with safety nets; were trying to live on the edge.
Good luck, young lady.
For the rest of you, for the love of everything sane, please save your money.
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