Everybody wants to save up from their income to build a substantial corpus in life. This corpus is usually meant to meet different financial objectives such as buying a house, building fund for retirement, children’s marriage, higher education etc. However, what happens when the saving gets out of hand? Some people accumulate money without any goals in mind, stack it up at home and even end up feeling anxious when they have to part with their money. These are characteristics of obsession with money, leading to deep anxiety issues and psychological disorder. Let’s look at some signs of hoarding and remedies that could rescue you from overdoing it.
Are You Compromising On Your Lifestyle?
Have you been avoiding to buy a car, delaying a vacation with family and depriving children of good-quality education despite having sufficient means? And, is it because you have overset your budget for saving? Mindless saving reduces your quality of life at present, leading to an artificial crisis. This could be harmful in the long run as you would be depriving your family and yourself of the lifestyle you deserve. Stick to saving up to 30-40% of your monthly income to avoid over-saving.
Do You Find Spending Painful?
Despite having investments in place, if you feel pain parting with your money, it’s a sure sign of hoarding. All your money will have to be spent either way. You need to be able to strike a balance between your present and future needs to spend your money in the right proportion.
Do You Keep Accumulating Money Without A Goal?
It’s important to identify your financial goals before you start saving, as it helps you to allocate your savings amount among the right investment vehicles. Saving without goals is directionless and can lead to wrong assessment of short-term and long-term needs. This in turn can lead to under- or over-accumulation of wealth often jeopardising your current needs.
If You Fear Investing Money
If you invest your money wisely, it would grow in time. Sometimes it comes with a certain degree of risk attached but it can be mitigated by diversifying your money into various asset classes. If you hoard money under your bed or in the cupboard in the fear of exposing your money to risk, you are missing out on the interest income. Your wealth would only get eroded with time due to the impact of inflation.
If You Are Always Looking For Cheaper Options
If you are spending substantial amount of time trying to find out cheaper deals and discounts even at the cost of compromising on the quality of products, you are showing signs of over-saving. If you have adequate money, you should be able to take buying decisions with more ease. Despite having the means, if you are willing to settle for cheaper options to cut back on cost, you are not distinguishing the important from the unimportant.
It’s good to introspect from time to time and run a check if your money habits are in place. If you feel any anxiety over spending money, feel free to consult an expert and address the issue, as the consequences of hoarding could not just be harmful for you but also your family and surroundings.
The author is the CEO of BankBazaar.com