Getting rich slowly vs. taking financial risks
After years of living well below my means, I'm finally a few weeks away from reaching a personal savings goal and rolling over my 401k. I'll hold for applause.
Yes, I'm almost in a secure place financially. But this has left some people close to me offering their input on what I should do with my income, now that I'm a grown up and all.
The suggestions are interesting. I've been told I should open my own business, something I've never had a desire to do. I've been told I should completely change careers, something I've already done once, recently. I've been told I should invest in real estate, and, well, let me put it this way. Yes, I'm close to being financially comfortable. That doesn't make me Donald Trump.
How Saving Money Cost Me Money
I used to have a savings problem. But not in the way that one might think.
For years, when payday would come, I would budget a ridiculously large percentage of my paycheck for savings. I left myself very little for bills and practically nothing for shopping, eating, entertainment — the things I vaguely dubbed "nonessentials." I was determined not to live beyond this budget.
Well, I sorely underestimated my love of "nonessentials." And it cost me, because I would inevitably overspend, even as little as $10. Which doesn't sound so bad, except that, after saving all of my money, I had nothing left in my checking account and would thus incur overdraft fees. At one point, a $2 purchase spiraled into $300 dollars of overdraft fees. Continue reading...
