The Biggest Myth About Good Savers

Myth: Good savers are robot-like, emotionless spenders who avoid expensive hobbies and passions. Reality: Good savers understand basic arithmetic.

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One of the big myths out there is the good savers are robot-like, emotionless spenders who always make disciplined, thoughtful decisions when parting with their money. They just refuse to “overspend” even in one area. They avoid expensive hobbies and passions. Well, it’s not true. At all. When I review the spending summaries of good savers I see that almost every single one of them has an area—or two—of indulgence. Something.

Over and over again I find myself seeing this and thinking: “Wow, you guys spend a lot on some weekends away.” Or “Wow, you guys really love your golf. Really love.” Or “Wow, I know your landscaping means a lot to you but jeez.” But note I said “thinking” not “saying.” I don’t voice it. It’s none of my business. You see, these good savers are “overspending,” or more accurately, “disproportionately spending,” in areas that give them the most bang for their buck.

The most joy units. The best return on investment. It makes good sense. But, and this is the key point, these people wisely understand something that sadly, many don’t: If you spend aggressively in one area, you have to cut back somewhere else. If you spend a ton on golf, you probably can’t also spend a ton on skiing.

And you probably have to make a cut back on nights out. Sorry, it’s basic arithmetic. There are trade-offs in life. There are tough choices. And don’t let your line of credit convince you otherwise. So many people have so much available credit, they aren’t forced to deal with this obvious reality. Until that is, they’re forced to deal with this obvious reality.

Usually by overwhelming financial stress.