It’s good to be frugal by nature. You will likely never get into financial trouble as a result. You will always be able to appreciate things since you’re never buying the best and most expensive stuff. Sometimes, however, it’s good to splurge.
You’ve already read “‘No Point Making Money If You Don’t Spend Your Money“, and I’m sure many of you agree. We work so hard every day for our money, and to just hoard all of it in a bank account is such a crying shame. There is no dearth of ways to make money, so we are actually much more afraid of running out of money than reality.
Time and time again, I see people who’ve been let go find jobs and security again. I’ve seen people invest their life savings in a project, only to lose it all. But, they are still alive and finding ways to live fulfilling lives again.
I get a sense we’re now too cautious with our money. We’ve been permanently scarred by the multiple evaporations of wealth over the past 15 years that we’d rather not spend on some of the most important things that give us happiness and comfort. Look at wealth indicators now vs. 2008. It’s taken 3 years, but on average, we’ve all breached our 2007 highs and some of us, by a lot. This is important since I can’t imagine us going through such a massive downturn like that again, at least for the next 10 years. In the meantime, don’t be afraid to spend your money on things you cherish, like a $1,000 doggie stroller for your beloved Chow Chow named “Bear”!