People who aren’t saving for retirement share a common excuse: “I want to enjoy life now. After all, I could get hit by a beer truck tomorrow.”
On the flip side, compulsive savers max out 401(k)s and IRAs while living with six roommates and eating a steady diet of Ramen and canned meat.
Here’s some news for both groups: Life is better in the middle. It’s about balance.
If you live life to the fullest without ever planning for your long-term needs, you will someday find yourself 65 and broke. Our generation cannot count on employer pensions or even Social Security. We can either save for retirement or work forever.
Still, our carefree spenders have a point: the beer trucks are out there, mowing down unwitting jaywalkers every week. So if you’re a miserly scrooge, go buy something; you might actually enjoy it.
And if you’re not saving for retirement because there is too much to spend your money on today, take a second to learn about retirement saving. Then take $100 you would’ve spent and open an IRA. Your future self will thank you.