Colleague told me I was *way* oversaving/investing...is she right?

Budgeting Forum
1

i’m 42 and work a stable government job with around $325k in assets across retirement, investments, and cash. i put away 38% of my $130k income every year through contributions like:

  • 12% employer match to 401a
  • 10% 401a contribution
  • 5% ROTH 457b
  • 5% ROTH IRA
  • 4% to AMEX HYSA
  • 2% to Schwab brokerage

my friends and colleagues think i’m too frugal and should spend more on my daughter or myself, but i feel like i live well already. i’m debt-free, have free healthcare and transit, and take a few vacations each year with points/miles. i also keep expenses low by biking, cooking at home, and using public transit. i’m catching up from not saving much in my 20s and early 30s, and my rent is modest despite living in a high-cost area.

do i need to spend more? or am i on the right track?

2

if you’re happy and comfortable with your savings rate, don’t let others’ opinions sway you. sounds like you’re spending in a way that feels right for you.

3

Arie said:
if you’re happy and comfortable with your savings rate, don’t let others’ opinions sway you. sounds like you’re spending in a way that feels right for you.

agree. maybe have a chat with your daughter to see if there’s anything she’s missing out on. it sounds like you’re very in-tune with her needs, though.

4

your friend is wrong. you’re setting yourself up for a great retirement.

5

Dezi said:
your friend is wrong. you’re setting yourself up for a great retirement.

most people wish they were saving like you. as long as you’re comfortable, investing more isn’t a bad thing.

6

Dezi said:
your friend is wrong. you’re setting yourself up for a great retirement.

you’re doing nothing wrong. since you’re able to save this much, you could look into supporting more expensive activities for your daughter if it interests you.

7

sounds like they want you to live like them. you’re doing great, no need to make changes.

8

maybe avoid discussing finances with most people, especially colleagues.

9

Merit said:
maybe avoid discussing finances with most people, especially colleagues.

totally agree. talking about money with friends, family, or coworkers can bring up all kinds of issues.

10

if you’re enjoying life and saving, then who cares what others think? sounds like you’re on track for an early retirement.

11

sounds like you’re doing great. no reason to make any changes if you’re happy with your current lifestyle.