Savers and Spenders

A.M. (one of my SVP Cincinnati Partners) and I were discussing the financial situation at Civic Garden Center (where Susan is now working part time as the C.F.O.).  A.M. said, "You know, there are Savers and Spenders in this world".... Susan is obviously a Saver".  He of course said this as a compliment since he too is a saver.  He added, "I'd rather be in my 50's doing this than ...... (and he mentioned a few spenders)". 

I then added my insight (well actually it is R.M.'s) when the Three College Musketeers were discussing philosophies of life and R.M. said "Money provides freedom of choices".  Consequently when you save today (sacrificing the present spending choice) you are "buying freedom of choice" in the future. 

This is one of the emotional battles that everyone must deal with.  There is no correct answer - only your own personal answer.  Savers like to criticize Spenders and visa versa.  It is happening now in the U.S. Government politics of raising the debt ceiling. 

The real answer lies in the Return on Investment.  Spending today (and this also applies to Giving) if done with proper return provides the start of a compounded benefit that continues forever.  Saving today is only better when the rate of return can exceed the compounded benefit accruing from the result of the spending action (or the future spend of the saver is for a better cause).

I could SPEND alot more time blogging about this - but I will SAVE you the pain.  :)