There's 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, You're Doing Something Wrong."
Oh, boy. It deserves a rebuttal.
The article begins with advice the author received from a friend. "Don't save money. Make more money," he told her.
She explains life before this moment:
OK, young people should see the world, meet people, and learn new stuff.
But, two things.
- If you can't enjoy time with friends without spending all your money, you're doing it wrong and your friends don't actually like you. People have been enjoying themselves long before $65 brunches were a thing.
- The decision isn't between saving or not saving, but finding a balance between the two that lets you enjoy life while being smart about your future.
Now, here's a rebuttal to some of the author's points about not saving in her 20s.
Specifically around age 25, when your prefrontal cortex becomes fully developed and you're able to make better decisions about the future consequences of your actions.
To think of a few ...
Waking up at age 63 with a sore back and saying, "You know what, I'm too old for this. Time to retire to Florida and watch House of Cards."
Getting laid off and not wondering how you're 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.
Another possibility is that they're sick of being your safety net.
You probably won't die in your 20s, so don't spend too much time thinking about this.
This is actually a good analogy. Most major-leagueathletesgo brokebecause their spending ambitionsare so detached from their income reality.
The time between now and things working out can be miserable if you don't have savings. More than likely you'll rely on someone who did save money, and pay them a 20% interest rate.
Other than savings. You can reach for your savings and use it fund whatever you need or want.
People who plan for the future aren't planning for their deaths either. They're planning for retirement, tuition, broken down cars, a new roof, a broken ankle, and a million other realities everyone deals with.
By saving, I'm betting that life's expenses won't perfectly line up with my bi-weekly paychecks. It's a bet with a 100% likelihood of paying off.
Another thing you'll regret is needing a new muffler and having to put it on your credit card or beg your parents for money.
See if your doctor accepts this joke as payment when you're 82 and can't afford an office visit.
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.
Good luck, young lady.
For the rest of you, for the love of everything sane, please save your money.
For more on this topic:
- How to actually save money
- How to pay for college if you're not rich
- An open letter to everyone under age 30
The article Seriously, You Should Save Money in Your 20s originally appeared on Fool.com.
Contact Morgan Housel at firstname.lastname@example.org. The Motley Fool has a disclosure policy.
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