Is ‘soft saving’ smart — or shortsighted?
By Kate Ashford, NerdWallet
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If you’ve ever decided to save less cash in your retirement account so you could do more traveling or support an expensive hobby, you might be “soft saving” (and not even know it).
Soft saving is about choosing to spend money on things you enjoy today and stashing money away less aggressively for your later years. People who take this approach are more concerned about what they’re doing tomorrow than what they’ll be doing at age 65 or 70.
“Soft saving is being more mindful about your lived experience now and not being willing to sacrifice too much in favor of your future yet,” says Rebecca Palmer, a certified financial planner in Washington, D.C., and head of guidance for financial planning platform Fruitful. “So, the balance between prioritizing future you versus current you.”