Bank’s financial planner told her to spend “damn it.”
Can you save too much? “I’ve always been a saver, very attached to money and very slow to spend it. My mother taught me the importance of real estate […] While many other models spent their money partying and on designer clothes or expensive hotels at fashion week, […] I saved up and bought a house when I was only 20,” multi-millionaire Tyra Banks told Money.com. The supermodel now has a net worth of around $90 million, according to information platform Celebrity Net Worth.
About 15 years ago, according to the presenter of the show “America’s Next Top Model”, her financial planner finally took her aside and asked her to spend money: She should “damn it” spend more money, the high reserves in the account only led to disproportionately high ones Taxes to the state and are not necessary for old-age provision.
Opinions differ: What is “too much” saved?
The size of your own reserves is very individual and depends on your personal goals for basic security and old-age provision. Nevertheless, financial planning offices have various clues that can be used to determine whether saving makes sense or not. According to some experts, it is best to save significantly more when you are young and when your salary is high than when you are older and on a low salary. Others, however, tell MarketWatch that saving is always good and could be more profitable, especially now that interest rates have risen. For Steven Gilbert from Gilbert Wealth financial planning, the question is not what is too much saved, but when the savings are too low. Excessive reserves can always be spent later and are not as dramatic as a lack of money. In addition, Chris Chen of Insight Financial Strategists warns MarketWatch against always saving: Once all goals are financially covered, there is no reason to accumulate more money. In this case, it is better to fulfill bigger wishes and enjoy life – after all, money is there to be spent.
Banks: “I needed this to feel safe”
The bottom line: Saving is important, but you shouldn’t lose track and only save in order to save. For Tyra Banks, 15 years ago, this meant reorganizing their finances and, after extensive consultation, opening an account with the budget for all expenses throughout the year. So she was no longer constantly afraid of spending too much money, but knew that she could really spend it all without hesitation. “I needed that to feel safe,” she tells money.com.
Olga Rogler / Editor finanzen.net
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