What You Need to Know About Spending Wisely

Ron Read, a gas station mechanic and janitor, died with a stock portfolio of $8 million. His wealth that was not known to many (even his stepson) came as a rude shock.

It was clear that the man had a working knowledge of the stock market but was openly known for using safety pins to hold his coat together. If that wasn’t enough, he drove a secondhand 2007 Toyota Yaris.

Quite astonishingly, a man once paid for his breakfast at Friendly’s since he looked like he needed the help.

Which raises another question: Had the man’s frugality reached an unhealthy extreme?

With 24% of the American population being tightwads and spendthrifts, it’s hard to tell where he fit in. Of course, tightwads feel pained when they have to spend while spendthrifts find their motivation in being able to save as much as possible.

Experts reveal that this need to be extremely frugal stems from suffering from early deprivation. Probably, they also have had to deal with extreme limitations when it came to spending. Without emotional support though, they always live with the fear that the sky can fall tomorrow.

Of course, super-savers who make it to retirement might find it difficult to loosen their purse strings since being frugal has become a habit. What can make matters is the fact that the work income has stopped. This can only be remedied by the person by making a clear analysis of their nest egg and the amount they can safely withdraw.

A number of people who are young also face this conflict too even if their savings are in place too. But of course, some of them – a lesser known couple like Lance and Victoria Cothern – make sure they set a price limit when it comes to spending on their wants apart from evaluating large purchases on a set of criteria that takes into consideration its longevity, planning and quality.