Are We Investing Too Much?! (Investing 50-60% of Our Income!)

February 1, 2023


Tyler has a question for us. He says, “investing is an important aspect of personal finance, but what happens when you invest too much?”

For those in their 20s, like Tyler and his spouse who are both pharmacists and save 50-60%, there is still so much time to make changes. At this age, it’s important to prioritize savings while also enjoying life and making memories. I would suggest that they should prioritize saving while also enhancing their basic standard of living to make their future self happy.

However, for those in their 30s and 40s who are still saving 50-60%, you should ask yourself, “What’s your why?” It is important to find the balance between being frugal and being a miser, and knowing what brings you joy. If you have reached a level of financial stability, it’s important to ensure that your happiness is not being impacted by over-saving.

In response to a concern about taking a nicer trip for one’s family, I would suggest making it relative. A person who has $250,000 in the bank and makes $100,000 a year. Spending $600 on a plane ticket wouldn’t seem unreasonable, so why should someone with $3 million in the bank think it’s crazy to spend $3,000 on a business class plane ticket?

There is a fine line between being financially responsible and sacrificing happiness, and it’s important to find the right balance for our individual needs and wants. Investing too much can lead to financial stability, but it’s important to make sure that we’re not sacrificing our joy in the process.



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