Keep Investing 37% of My Income Even If I Don’t Have a Goal?

February 22, 2023

In this highlight, we discuss the importance of investing with a goal in mind.


Lee, a 27-year-old, shares that he’s saving 37% of his income, with most of it going toward retirement. However, he’s unsure of what he’s saving for outside of that. He wonders if he should continue to save even if he doesn’t have a specific goal in mind.

Americans are generally addicted to consumption. So, when individuals start saving and building wealth, they become financial mutants. It’s easy to become addicted to saving money, but there’s a trap. There’s a fine line between being a Financial Mutant and a Financial Miser. If you’re not enjoying the phase of life you’re in, you may be veering into Financial Miser territory.

Lee agrees that many young people may not know what they’re saving for. He recalls his own experience of starting to invest without thinking about retirement, marriage, children, or where he was going to live. However, he knew that he should save for the future and put money aside to give himself options. If you’re in your 20s and saving but unsure of what you’re saving for, Lee argues that you’re saving to figure it out. Future Lee (35-40 years old) may have different goals, and he/she will be grateful that 27-year-old Lee put that money aside to build an army of dollars. The sooner you start stacking your savings, the more time you have for it to grow.

The point of the conversation is to check the happiness factor and fulfillment factor. I want individuals to stop and ask themselves if they’re happy. In my 20s, happiness meant being with my spouse and having an annual golf trip with my buddies. I knew that a fancy car or a nice watch wouldn’t make me happier, so I didn’t need those things. The key is to find the right balance between saving and enjoying your life.

In conclusion, saving money is crucial, even if you’re not sure what you’re saving for. Future you will be grateful that present you put money aside to build an army of dollars. However, it’s essential to find the right balance and make sure that you’re enjoying the phase of life you’re in. Remember, there’s a fine line between being a Financial Mutant and a Financial Miser.



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