Tuesday, August 25, 1998

Spend A Little!
by Jim Mischel ([email protected])

You've probably heard the story about the elderly lady who lived like a pauper, living in a shack, eating little and infrequently, and pinching every penny. When she died, her heirs discovered that she had a net worth of several million dollars. Or the man who, with his wife, lived very frugally on his pension and Social Security. When he died his wife found that he had well over a million dollars in cash and securities. Her response: "We could have enjoyed our retirement!"

It was a very Foolish person who first said "You can't take it with you." You can scrimp and save all you like and build a portfolio to make Warren Buffett envious, but if you don't enjoy your wealth, what's the point? Living frugally and spending wisely are fine, but remember to live a little while you're at it! If, like a good Fool, you're investing ten percent or more of your income, then you deserve to go out for dinner once or twice a week, you deserve to drive a nicer car or live in a nicer house, or spend a few extra (thousand) dollars on an extravagant vacation.

It's only money. What's the point of investing if you're just going to hoard it? Sure, that extra $5,000 that you spend on a cruise this winter could grow to $50,000 or more by the time you retire, but then what are you going to do with it? If you can't get used to spending money now, you're sure not going to have an easier time when you retire. Besides, there are probably things you'd like to do today that you just won't be capable of (or crazy enough to try) when you're 65 or 70 years old.

If you've been a good Fool, paid off your debts, kept your spending in check, and maintained a regular savings and investment plan, then you've set yourself up to enjoy your retirement or even to retire at a relatively young age. You've also earned the right to enjoy yourself right now. So keep up the good work, but don't be afraid to treat yourself to the nicer things in life while you're at it. To live and save and not enjoy the rewards along the way would be most unFoolish indeed.

[Hey Fools, why not pen a Fribble, yourself? We welcome submissions from readers. Just click here and read the "What's a Fribble?" item, pen a short masterpiece, and send it off to TMF [email protected].]

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