You’re a great saver. That’s the good news! But today we’ll share some of the problems faced by people who have been diligent savers over the years.
Too much in cash
For people who are naturally gifted at saving money, we sometimes find that they have a significant amount of money just sitting in the bank.
Sure, it’s important to have enough cash to give you a solid emergency fund, but remember that all of your cash is losing buying power because of inflation.
For people who have gotten used to padding their bank account over the years, this can be a hard change to make.
Too much risk
The opposite of the person who has too much in cash is the person who has a broken risk meter. Because they’ve saved so aggressively over the years, they haven’t noticed as much when the market has been down because their contributions have offset many of their portfolio losses.
But there will come a time when they no longer have an income that allows them to save so aggressively, so the market losses won’t be so easily masked.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
Listen to the full episode or use the timestamps to jump to a specific section. Thanks for listening! We’ll be back for another show every other Thursday.
Today’s Rundown:
1:24 – Too much cash
3:48 – Too much risk
5:19 – Tax time bomb
6:50 – Scared to spend
