Often when we get into the saving spree, the excitement of seeing our savings accumulating in our savings accounts may be too enticing, that we may not really be saving but creating more costs. The logic of the twist is that, you could be saving too much than you need to be, which is as bad or even worse than not saving at all.
Talk of a newbie in saving who has just read an article about saving or attended a seminar where all the merits of saving were enticingly elaborated that they made up their mind to start saving. Once they are in it, their morale and psych takes over and they feel like they should save every coin that lands on their hands.
The swelling figures on their savings accounts glare at them as if asking for more companions. The very committed saver then responds to the good looking account by cutting more costs and depositing more money into the savings account.
This trend continues until they are saving literary everything and leaving nothing for their own personal up-keep or even for paying their basic bills. They neglect their health, eat poor diets, wear shabby clothes, and leave in shabby houses; all in the name of saving for the future.
What happens in a short while is that; they discover that the formerly exciting venture has now turned into a punishment. They have and are still accumulating more money in their savings accounts, but they are living a miserable life. Their health is deteriorating, their life is full of stress and depression and they are also accumulating credit since they preferred credit to paying cash; reason; they were saving!
Once things get out of hand, it is these same people who will spend all their money in: hospital bills and other health expenses, spend some with counselors as they try to recover from their self inflicted depressions, spend some in paying back their credits and at exaggerated interest rates and worst of all, impulsively spend all the remaining savings due to lack of a smart saving plan.
But all this could have been avoided. You just need to save what is reasonably enough. Ensure your bills are covered and your healthy and comfortable lifestyle is catered for. Once you are done with that, you can then save as much as you wish. Otherwise, you will just be accumulating future costs instead of saving.
Remember, we live today; as much as tomorrow is important, it should not be a reason why we neglect our lives today. Enjoy each day maximally even as you prepare for tomorrow; cause tomorrow may never come anyway!
However, be prudent enough, to build-up a fund to take care of tomorrow if it happens to come..