Anonymous
Anonymous asked in Business & FinancePersonal Finance · 4 weeks ago

What is the point in saving millions of dollars for a "rainy day"?

I just feel like this is what people say when they are too afraid to spend the money they worked hard to earn over decades. What is the point in spending 30 years working hard to earn millions if you just save it until you die? Sure, your children get it, and that is definitely a nice thing to provide for them, but it wouldn't hurt to reward yourself because you only live once. For example, one of my family members is worth about $50 million dollars through starting a business and he lives link a monk and eats ramen noodles and has a flip phone. He hasn't taken a vacation in years and has no children. So what's the point? He's getting older and still chooses to live like a monk at 57 years old

Update:

I just feel like at some point, it becomes a mental disorder to be that frugal

Update 2:

And also the fact that "rainy days" don't cost millions of dollars. If you have health insurance, even a medical emergency where you almost die and are in the hospital for weeks won't cost more than 100k.

6 Answers

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  • Anonymous
    4 weeks ago

    I'm with you.  I think that some people are just afraid to part with their money. Or they think that most purchases (including good food) are frivolous. In your relative's case, it's possible he truly believes that he doesn't deserve the things or lifestyle his money can buy. Then again, he could be perfectly happy eating ramen noodles and not going anywhere.  I do agree that the fear of spending when it comes to that amount of money, is some kind of mental disorder.

  • edward
    Lv 7
    4 weeks ago

    Because he doesn’t realize he’s basically givng money to the government when he doesn’t spend it.  His accountant should’ve advised him about that.  He’s not really saving any money because it’s going to the government, they’re making a profit from him not spending any.  

  • G
    Lv 5
    4 weeks ago

    Some people's lifestyle demands millions just for every day. Is it a bad thing to want a big boat and trophy wife?

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  • Anonymous
    4 weeks ago

    "one of my family members is worth about $50 million dollars through starting a business and he lives link a monk and eats ramen noodles and has a flip phone. He hasn't taken a vacation in years and has no children"   That is not the norm and you know it.   Why are you even bringing it up?

    "So what's the point?"   I'll die with sizeable assets and I'm pretty stoked that the family trust I've created will provide higher education for my nieces, nephews and their spouses/descendants for the next several generations.   I'll do some charitable giving too.    The point is that it's his life and his money and he doesn't owe you any explanations.   Worry about your own life and own money.

    "If you have health insurance, even a medical emergency where you almost die and are in the hospital for weeks won't cost more than 100k."   You know nothing.   People are bankrupted by medical costs all the time - particularly for things like skilled nursing/physical rehab/long term care/memory care.   None of this is covered by medical insurance.   Even the best long term care insurance still only covers a portion - and most people don't have long term care insurance because it's expensive and they don't think they will need it. 

    Ever been to a McDonald's or drugstore or Jo-Ann's and seen the 70+ year olds cashiering?   If you want that to be you, go for it.  It's your life.   But don't criticize other people for valuing the sense of security, accomplishment and charity from dying with a sizeable nest egg. 

    How old are you?   You sound like you need a few more years in the cooker.   Either that or you regret your choices and now have little hope of building any substantial assets. 

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  • Scott
    Lv 7
    4 weeks ago

    There's a concept called "retirement". Once you have enough money saved, you don't have to work anymore.

  • 4 weeks ago

    I would think the reason that he has a lot of money is because he isn't wasting it. If he is happy with it, why not? 

    The presence of money doesn't buy happiness. It's the absence of money which is a problem. But once you have enough for all the basic necessities and enough reserves to deal with emergencies, you can't buy happiness, wisdom, talent or knowledge. 

    If your relative is happy, why not let him be happy in a way which suits him? Some people enjoy their work and they don't want to retire. And actually he might decide to give the money away to support causes he is interested in. Maybe he already has?

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