US EditionPublished • loading... • Updated
Is ‘Soft Saving’ Smart — or Short-Sighted?
Financial planners highlight soft saving as a flexible strategy for young adults, emphasizing gradual savings increases and balancing current spending with future retirement needs.
- Recently, soft saving describes prioritizing spending today while saving less aggressively for later life, a purposeful mindset shift though not new, financial planners including Jesica Ray say.
- Rebecca Palmer says young people in their 20s often prioritize near-term plans over age 65 preparation and react against strict parental budgeting, a trend linked to Gen Z.
- Advisers recommend practical steps like automating soft savings for consistency and saving first, then increasing contributions gradually with periodic check-ins, Rebecca Palmer said.
- Advisers caution that skipping early investing risks missing compounding, and small savings in your 20s can be hard to boost in your 40s amid mortgages or children, though some say soft saving is acceptable if trade-offs are understood.
- To strike a balance, financial advisers recommend modeling savings over time with a professional and saving some while allowing small indulgences to avoid bingeing later.
Insights by Ground AI
15 Articles
15 Articles
ABC FOX Montana+14 Reposted by 14 other sources
Is ‘Soft Saving’ Smart — or Short-Sighted?
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.If you’ve ever…
·Missoula, United States
Read Full ArticleCoverage Details
Total News Sources15
Leaning Left3Leaning Right1Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 33%
R 17%
Factuality
To view factuality data please Upgrade to Premium
