Am I obsessed with saving my money?

[justcoasting]

Saving obsession

As the title says u feel like I’m obsessed with saving most of my money. When I get a paid half goes to savings and investing. I usually give myself around $30 to spend for two weeks. Is this a problem, since I don’t really spend the money I make. The other half is used for bills. Why am I saving so much? I’m about to head into college after high school and wanted money to put towards costs and living. What should I do?

 

[gcbdeengirl]

@justcoasting Make sure you’re putting all your money into a high yield savings account and pay off any credit card debt that you may be in. I’m in the same position where I save more than 80% of my paycheck and the rest goes to necessary expenses. Keep doing what you’re doing and in the next decade or so You’ll have a peace of mind

 

[gordie1]

@gcbdeengirl I have a question what high yields do you think are good, lately I've read about ppl who have done that and then there were issues where the bank took money and now they are having a hard time getting it back, for reason or another!

 

[mcolley10]

@gordie1

4.5%. There are a ton and they’re all FDIC insured so no problem accessing money at a moment’s notice.

 

[hikebikeeat]

@gordie1 Nerdwallet.com has a regularly curated list of FDIC-insured HYSA providers. Those have no risk (the only risk is the bank deciding that from now on the rate will now be lower, even 0%, in which case you move on).

If you try to find other opportunities at inflated rates you run the risk of finding scams and not getting your money back. If it sounds too good to be true, then it usually is.

 

[golgothaghostwriter]

@gordie1

I've read about ppl who have done that and then there were issues where the bank took money and now they are having a hard time getting it back, for reason or another!

This is definitely some sort of misunderstanding. Either these people were lying to you or they weren’t putting their money in HYSAs.

 

[mcolley10]

@golgothaghostwriter Crypto companies offer similar yields without FDIC protection because crypto which could be the source of confusion.

 

[golgothaghostwriter]

@mcolley10 Yeah, that’s not a bank though, which would be the misunderstanding. I bet you’re right.