While saving for the future is crucial, is it possible to save too much? Surprisingly, yes! Many of you may actually be over-saving, and it could be affecting your quality of life in ways you might not even realize.
The majority of respondents save at least 10% of their income—nearly three times the U.S. national savings rate of 3.4%, according to Federal Reserve data. Some of you even save 25%, 50%, or an incredible 75% of your income! While being a “hyper-saver” has its perks, it’s important to recognize when saving starts to hinder your overall life satisfaction.
So how can you tell if you’ve crossed that line? Let’s explore five key signs that you might be over-saving for retirement and missing out on enjoying life today.
1. Saving is Straining Your Relationships
One of the clearest signs you’re saving too much is when it begins to affect your relationships, especially with your significant other. Financial issues are a leading cause of stress in relationships. In fact, a 2024 study on the top reasons for divorce listed financial problems as the fifth most common factor, with 37% of couples citing money as a reason for splitting up. Money stress isn’t just about not having enough—being too frugal can be equally problematic.
Early in a relationship, frugality might help you stay afloat financially. However, as your income and savings grow, continuing to live a super-restricted lifestyle may cause tension, especially if your partner wants to start enjoying the fruits of your financial success. If you find yourselves constantly arguing over spending, it might be time to reassess your saving habits. After all, financial independence is about more than just hoarding money—it’s about freedom and peace of mind.
Actionable Tip: Have an open conversation with your partner about how much is enough to save. Set shared financial goals and determine how you can enjoy life now while still being responsible for the future.
2. You’re Missing Out on New Experiences
Are the days starting to blend together? Do you feel like time is flying by without you having anything new to look forward to? If so, it could be because you’re too focused on saving and not enough on living.
Many “hyper-savers” tend to stay home to avoid spending money. While this frugality may benefit your bank account, it can lead to feelings of monotony and dissatisfaction. According to neuroscientist Matt Johnson, PhD, novelty plays a key role in how our brains perceive time. New experiences—whether it’s travel, social events, or simply trying something different—make time feel slower and more fulfilling.
Without these novel experiences, time can seem to slip away unnoticed. If you’re saving so much that you avoid even affordable experiences, it might be time to rethink your balance between saving and living.
Actionable Tip: Plan small, low-cost activities that bring joy into your life—like taking a road trip, going for a hike, or catching a local concert. These experiences don’t have to break the bank but can help you feel more present and engaged in life.
3. You’ve Surpassed Your Financial Goals
Another clear sign you’re over-saving is if you’ve already surpassed your financial goals but continue to save aggressively. According to Fidelity, by age 40, you should have saved three times your annual salary to be on track for retirement. If you’ve doubled or tripled that amount and continue to live like you’re in survival mode, you may be overdoing it.
For example, if you’re 40 years old and earn $100,000 per year, Fidelity suggests that having $300,000 saved means you're on pace for retirement. However, if you have $600,000 or more saved and still resist spending on anything that could enhance your current quality of life, it might be time to reassess. Saving for the future is important, but life is meant to be enjoyed now as well.
Actionable Tip: Reevaluate your financial goals and determine whether you can afford to loosen up a bit. Consider how much joy a little more spending could bring to your life without jeopardizing your long-term financial security.
4. You’re Wasting Time on Low-Impact Money-Saving Habits
Do you find yourself spending hours on activities that only save a few dollars? Whether it’s driving out of your way to save a few cents on gas or spending weeks growing microgreens to save on groceries, these behaviors could indicate an over-saving mindset.
Economist Dan Martell developed the concept of the “buyback rate,” which can help you evaluate the opportunity cost of your time. Essentially, you calculate your hourly rate by dividing your annual income by 2,000. For instance, if you make $100,000 per year, your time is worth $50 per hour. If you’re spending an hour to save $5, it’s probably not worth the time and effort.
Actionable Tip: Use your buyback rate to determine whether a money-saving activity is worth your time. If not, consider outsourcing tasks that don’t meet your rate, allowing you to focus on activities that bring you joy or generate more value.
5. You’re Neglecting Your Health or Safety to Save Money
This is perhaps the most concerning sign of over-saving: putting off essential purchases, like healthcare or safety expenses, to save a few extra dollars. In the U.S., where healthcare can be expensive even with insurance, it’s not uncommon for people to delay doctor visits or treatments out of financial fear. However, your health should always come first. No amount of money is worth compromising your well-being.
Similarly, avoiding necessary expenses—like replacing worn-out car brakes or purchasing fire insurance—because you want to save more could put your safety at risk. Don’t let an obsession with saving money jeopardize your health or security.
Actionable Tip: Set aside funds specifically for health and safety-related expenses. Prioritize these over other non-essential savings goals. Remember, your well-being is the foundation that allows you to enjoy the money you’re saving.
Finding a Healthy Balance
Saving for the future is essential, but life is happening now. If you resonated with any of these signs, it might be time to find a balance between preparing for tomorrow and living today. Financial independence isn’t just about having a fat bank account—it’s about the freedom to live life on your terms.
Take some time to reflect: Are you living a fulfilling life? Are you spending enough time with loved ones? Have you had a new experience recently that brought you joy? If not, it might be time to rethink how much you’re saving and start enjoying the fruits of your labor.