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.

 

[tisparagus]

@gordie1 I would recommend going to bankrate, they are a trusted source of information on rates and account types. I think for most online High Yield Savings accounts range between 5.25% and 4.8% on average. Of course before making a decision make sure you are looking at the information to see if the account is the best fit for your needs. I would always recommend researching information and not doing something because someone told you off the internet.

 

[ez_fx]

@gordie1 Fidelity money market is at 4.99
Fulton bank is 4.65% if you open online and if you combine with a checking with direct deposit there is a $250 bonus

 

[leelou]

@justcoasting I feel this exact same way! I LOVE saving and investing and paying my mortgage off early. I associate spending money with some negative feelings. I’m constantly scheming to get more money from making some passive decision like putting money in a CD or something like that. This gets me really excited

 

[royblizzard]

@justcoasting Me and my spouse have a savings projection spreadsheet. Once in a while we compare it to actuals I get such a rush from exceeding our savings goals!

 

[harsin101]

@justcoasting Keep doing what you’re doing. Don’t torture yourself though. You have a near term cash need. Your life is entering a new phase. The best thing to do is save money in a low risk account. There are plenty of options paying around 5%. What are you getting now?

 

[justcoasting]

@harsin101 Around 4.25%

 

[ez_fx]

@justcoasting That isn't awful. But there are some better options. If you've got $10k in the bank you're only sacrificing $100 a year or so from 5%.

 

[selene03]

@justcoasting It's reasonable to save that aggressively, but I think there's a couple of things you should assess. What are you saving for? Is it towards vacation, wedding emergency, or just because? It's okay to save in advance if he money has a purpose, but also make sure you're taking some time to enjoy your money.

Saving just because can be unhealthy, but if it has a purpose in future it can be very healthy.

 

[hukman20]

@justcoasting I did the same thing for about a year and was able to buy a brand new car at 18. I paid it off in under 2 years, have no debt and now Im saving for a home with my fiancé. I was raised in a family that had no financial education and was lucky(?) enough to learn from their mistakes. Im probably biased, but I don’t think it’s a bad thing. Just remember to live your life while you can!

 

[bill4282]

@justcoasting keep doing what your doing. that money you are saving and investing will put you in a better spot then most people. It is a good obsession to have really. If your not feeling like your missing out on anything then its not a problem. But if you feel like your missing on major life even which at that age you really are not in the long run. I am happy I am the same as you I can leave my job 2row if i wanted and be ok for a good while and even see the world not many can do that it a super power you have.

 

[erichines]

@bill4282

I am the same as you I can leave my job 2row if i wanted and be ok for a good while and even see the world not many can do that it a super power you have.

If you can do it, then do it. It's not really a benefit if you aren't willing to let yourself enjoy it. Otherwise it's just numbers on a screen.

 

[blueberry25]

@justcoasting I am sorry $30 in two weeks? And you are saving half? Meaning you make $120/mo? Are you in the United States?

I am not sure this qualifies as something to worry about. If you find this is what you do when you have actual income and actual expenses then okay come back and we can talk about it.