Lately, I’ve been thinking that the conundrum in personal finance is this: tension between living for today and preparing for the future. I have friends and relatives who died long before their time, and friends and relatives who were going strong in their 80s and 90s. I don’t want to be so focused on saving for the future that I forget to have fun today.
But I don’t want to want to spend like crazy now and then be stuck in poverty at age 95, either.
That balance is so hard. The classic fable is of the ant and the grasshopper, with the ant saving for winter and the grasshopper out having fun all summer. Is there an insect with perfect balance? Probably not.
And so, I struggle. Probably, we all struggle. I see a Living Social deal on scarves, and I get all excited because I am a sucker for silk scarves (and on a quest to bring them back into style). But I really should put more money in retirement, and my kid should be going to college in four years, and and and.
And and and. A relative of mine, younger than I, spent two days in the hospital for a suspected stroke this week. And then I think, live for the moment! Because who knows what will happen!
One step in working on personal financial planning is recognizing that there is this tension between now and later. The goals are so far off, and we humans are terrible at valuing our future time. Now and later have to balance. Have a little fun, save a little money. Lather, rinse, repeat.
