Should you save more to achieve financial independence sooner?

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It’s a pretty straightforward formula. The more you save, the faster you achieve financial independence. But saving too much can have unexpected drawbacks. In this video clip from Motley Crazy alive, recorded on February 19, Fool contributors Jason Hall and Brian Withers discuss why you might want to take a more measured approach to saving for your future.

Brian Withers: One of the things I love about this whole discussion is, a lot of times people say, when it comes to this point [of being financially independent], [but] there’s no reason you can’t take a two week vacation today, and take that RV, and drive in some of the national parks, and try it out, and test it out. I know Brian Stoffel did this. He and his wife were elementary school teachers and they looked [a rental house] on Airbnb, and moved to Costa Rica for a trial period.

Jason Hall: Yes, it’s a lifestyle change.

Withers: So much. Yes. It’s a part of what they do today. Please don’t push things into the future that you might be doing now to test things out and try things out. Because you can decide that living in an RV after two weeks with your spouse and dog, and maybe or not having kids is not all it’s supposed to be.

Room: In fact, I’m going to drop a link here in the Zoom chat. This is an article of it. We first published it on Fool.com several years ago and updated it last fall. He talks about FIRE. He talks about some of these different flavors.

I think this is an important thing you mentioned because there are people who live on ramen noodles and save every penny they can as aggressively as they can so they can get to a point. where they’re maybe even in their forties, they can walk away from it all and have a huge nest egg.

Two parts of that, Brian, you pulled it off. No you are missing out on experiences now, I think that’s something we’re all going to talk about, things that we’re always willing to pay as an expense. But I think the other part, too, is that you start to practice this frugality. You may come to a point where emotionally you cannot get past that and actually enjoy the wealth that you have created. You cannot really begin to reap the rewards of your labor. I think there is a balance there, that everyone has to find what works for them.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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