Am I very wasteful with my money or is it the norm these days

[PardonTheWait]

House prices are crazy no question of that but there are also MANY more things that people today see as vital, which me and your dad didn't. When I bought my first house 30'ish years ago for £51K I had a company car, company phone, company Zenith laptop. There was no internet, hardly anyone had phones and the flat-screen TV was some time off. My money went on food, IKEA cheap furniture and some nights out, then it was gone and was like that for maybe 5 years. I struggled, I ran up big bills and overdraft and it nearly got on top of me, but I earned myself out of it in the end.

But my point is I gave up holidays, going out every night, dining out, buying expensive kit etc. Today people just won't, they think they have the right and well, I suppose they do but many who say they can't afford to buy, actually can but they need to compromise and they simply won't. Catch 22.

What I was driving at is that the compromise you speak of isn't enough for a lot of people. It doesn't matter what they do, it's not going to happen for them until someone dies and leaves them some money. So I totally get why they just don't bother. And these aren't yobs and layabouts we're talking about here, these are normal people with normal jobs like what you had when you bought your house. Of course everyone didn't have a mobile back then - they didn't exist in the form they do now. This stuff you see people 'squandering' their money on wasn't there then, and it isn't expensive now. 'Flat-screen' TVs are the only ones you can buy now, and some of them (the ones most people have) cost buttons.

I also read a really interesting article a while back, I forget where, about how this whole idea of an Englishman's home being his castle, and the desperate need to be on the property ladder, is a relatively recent one and one that is disappearing - in a lot of countries owning a home just isn't a thing people do, and renting for life is the norm. For me personally I am 100% committed to owning a home, and soon, but the fact is unless I had my fiancée and both of our good luck in that we've both basically got a load of money people were/are willing to GIVE us to do so, it wouldn't happen no matter how much we scrimped and saved, and I do think a lot of that is due to the previous generation effectively pulling the ladder up behind them and leaving us to fend for ourselves.

I mean.. good luck buying a fixer-upper in this market, which is what a lot of older people did to get their foot on the ladder. They almost don't exist, and when they do come up, some property developer with cash waiting buys it up, does the bare minimum to prep it for the rental market, and charges 150% of the mortgage costs to rent it out.

Where your generation had a fixer-upper house that could become a family home, we have a ****hole studio flat, or a part-ownership deal we'll never get out of because property prices are shooting up so fast we'll never buy the other half.

Again, I must stress that I'm not bitter about this particularly because I am lucky. I'm going to get away with it because of handouts to both me and my other half.

If I was single, unless I was honestly either a spectacularly high earner, or frugal to the point of absurdity, I would never ever in a million years own even the grottiest property, let alone anywhere that anyone would actually choose to live.

My fiancée is a property manager and basically spends her days listening to well-to-do landlords have tantrums at her because they need to spend money to make their properties legal to live in so they can swan about living off the profits, just because they happened to be born in a time when houses cost four quid and they earned 50p a year. It's very frustrating to me.

Here's one thing that gets me. 'You young people now buying everything on finance'... and then in the next breath, 'I couldn't even afford a telly when I was younger, me and your mum had to get one from Radio Rentals!'

DO YOU EVEN HEAR YOURSELVES

 

[easyrider]

When I was a kid 15...I wanted a guitar... I washed dishes until I got the money to buy one...when I was 17 I wanted a car...freedom...I didn’t go out, I saved all my money until I passed my test and then bought one.

A 17 year rocking a £1000 phone is vulgar imo...especially when they have other more important things they need to achieve in their life...

It’s about priorities.

 

[PardonTheWait]

When I was a kid 15...I wanted a guitar... I washed dishes until I got the money to buy one...when I was 17 I wanted a car...freedom...I didn’t go out, I saved all my money until I passed my test and then bought one.

A 17 year rocking a £1000 phone is vulgar imo...especially when they have other more important things they need to achieve in their life...

It’s about priorities.

And when you wanted a house you saved up for six months to buy one, right

 

[easyrider]

And when you wanted a house you saved up for six months to buy one, right

No, I lived in a static caravan for nearly a decade while I built my own house...

I sacfriced everything and saved every penny I could...I bought and sold guitars from the states when the exchange rate was good to pay for roof tiles...

I didn’t go out...I didn’t go on holiday..all my focus was on building the house...

The guitar on the far left was bought for 600$ I sold about a week later for £1200

 

[PardonTheWait]

No, I lived in a static caravan for nearly a decade while I built my own house...

So you had enough money to buy property and a static caravan?

I'm winding you up, but honestly I do find this whole discussion really frustrating. The older generation exclaiming that they didn't have things that weren't invented yet, while ignoring the actual facts and figures with regards income/house price ratios, which, if we're all honest, are just totally unashamedly bonkers lately.

People of this generation aren't lazy, we work hard, honest work is getting harder to come by, and the outlook is getting bleaker and bleaker. I'm 34, and I'm in a position where people in my parents' generation are often still unashamedly racist, xenophobic and homophobic, and people of 20 years old are telling people off for assuming their pronoun.

It's very confusing for me. All I want is a house to live in and I feel very lucky that I'm going to have the help to buy one. I really do feel like I'm part of the last generation that are going to have any chance at all to buy, whether the reason is the previous generation pulling the ladder up behind them, or us being lazy avocado eating pansexual gender fluid **********.

 

[chaparral]

The problem I find is that it almost impossible to save for a house as people do not have much money left after they paid todays very high rent prices...

 

[Boycey0211]

So you had enough money to buy property and a static caravan?

I'm winding you up, but honestly I do find this whole discussion really frustrating. The older generation exclaiming that they didn't have things that weren't invented yet, while ignoring the actual facts and figures with regards income/house price ratios, which, if we're all honest, are just totally unashamedly bonkers lately.

People of this generation aren't lazy, we work hard, honest work is getting harder to come by, and the outlook is getting bleaker and bleaker. I'm 34, and I'm in a position where people in my parents' generation are often still unashamedly racist, xenophobic and homophobic, and people of 20 years old are telling people off for assuming their pronoun.

It's very confusing for me. All I want is a house to live in and I feel very lucky that I'm going to have the help to buy one. I really do feel like I'm part of the last generation that are going to have any chance at all to buy, whether the reason is the previous generation pulling the ladder up behind them, or us being lazy avocado eating pansexual gender fluid **********.

31 here, spent 7-8 years squirreling money away, spent a lot on a new car in cash from my savings and JUST had enough left over for a decent deposit on a 'fixer upper' which i plan on living in for life potentially.

I sacrificed huge portions of my life to do this, and don't regret any of it. House needs a lot of work but as long as the brexiteers dont **** us its affordable and worth the effort.

You reap what you sow.

 

[Doogles]

So you had enough money to buy property and a static caravan?

I'm winding you up, but honestly I do find this whole discussion really frustrating. The older generation exclaiming that they didn't have things that weren't invented yet, while ignoring the actual facts and figures with regards income/house price ratios, which, if we're all honest, are just totally unashamedly bonkers lately.

People of this generation aren't lazy, we work hard, honest work is getting harder to come by, and the outlook is getting bleaker and bleaker. I'm 34, and I'm in a position where people in my parents' generation are often still unashamedly racist, xenophobic and homophobic, and people of 20 years old are telling people off for assuming their pronoun.

It's very confusing for me. All I want is a house to live in and I feel very lucky that I'm going to have the help to buy one. I really do feel like I'm part of the last generation that are going to have any chance at all to buy, whether the reason is the previous generation pulling the ladder up behind them, or us being lazy avocado eating pansexual gender fluid **********.

I honestly think the higher powers don't want us to own anything, that way they have full control, don't own your own car or house they can do what they want with you, otherwise you'll have nothing once you can't pay the payments. If you look at the 1800's you'd be struggling to buy your own house if you were lower class, and if you got an injury at work you were out the house, it's not that bad now however I feel this is what is to come within the next 30-40 years. Education also is stupidly expensive now for anything after college, best be a brickie/plumber if you want decent wages without too much expense on education.

 

[easyrider]

The problem I find is that it almost impossible to save for a house as people do not have much money left after they paid todays very high rent prices...

Depends where you live...in my early 20s I lived in a rented shared house...it was cheap and very much fun lol ...

Thought I would hate it...but it was a professional house rather than a student , dole doss house...

I honestly think the higher powers don't want us to own anything, that way they have full control, don't own your own car or house they can do what they want with you, otherwise you'll have nothing once you can't pay the payments. If you look at the 1800's you'd be struggling to buy your own house if you were lower class, and if you got an injury at work you were out the house, it's not that bad now however I feel this is what is to come within the next 30-40 years. Education also is stupidly expensive now for anything after college, best be a brickie/plumber if you want decent wages without too much expense on education.

You can buy and own a decent car for 3.5k...but people don’t...they buy on the never never and wonder why they have no money...

A car sits in your work car park for 8 hours a day...and then sits in your drive or garage or street for 12 hours a night...it’s one of the biggest wastes of money a middle of the road earner squanders away...

31 here, spent 7-8 years squirreling money away, spent a lot on a new car in cash from my savings and JUST had enough left over for a decent deposit on a 'fixer upper' which i plan on living in for life potentially.

I sacrificed huge portions of my life to do this, and don't regret any of it. House needs a lot of work but as long as the brexiteers dont **** us its affordable and worth the effort.

You reap what you sow.

Why did you buy the car? Why not just pour all the savings into the property ?

 

[Boycey0211]

Why did you buy the car? Why not just pour all the savings into the property ?

I bought the car about 2 years before I found the house I wanted, I've always driven £500 rotters up until that point and when the suspension started knocking a week after Mot I decided to treat myself.

 

[Buffman]

You can buy and own a decent car for 3.5k...

I agree with the sentiment re: expensive cars, but I don't think a 3.5k car is going to be "decent". Citation needed off auto trader

 

[DrToffnar]

It's all relative right?

If you're living within your means and are having a good time spending the cash you don't necessarily need then all power to you!

So you had enough money to buy property and a static caravan?

I'm winding you up, but honestly I do find this whole discussion really frustrating. The older generation exclaiming that they didn't have things that weren't invented yet, while ignoring the actual facts and figures with regards income/house price ratios, which, if we're all honest, are just totally unashamedly bonkers lately.

People of this generation aren't lazy, we work hard, honest work is getting harder to come by, and the outlook is getting bleaker and bleaker. I'm 34, and I'm in a position where people in my parents' generation are often still unashamedly racist, xenophobic and homophobic, and people of 20 years old are telling people off for assuming their pronoun.

It's very confusing for me. All I want is a house to live in and I feel very lucky that I'm going to have the help to buy one. I really do feel like I'm part of the last generation that are going to have any chance at all to buy, whether the reason is the previous generation pulling the ladder up behind them, or us being lazy avocado eating pansexual gender fluid **********.

Preach!

 

[ci_newman]

I agree with the sentiment re: expensive cars, but I don't think a 3.5k car is going to be "decent". Citation needed off auto trader

It all depends on your definition of decent (and a fairly large chunk of luck too). My car is worth £2000 (Seat Leon FR, 2007-reg). It's 200bhp, it has cruise control, blue tooth, DSG and climate control. The interior is pretty dated, but functionally it offers everything that a £15k car does (it drives from A-B with some toys). The only risk is that because of it's age, there is a higher chance of something failing.

 

[wingman]

I have always tracked my spending, back in the day with MS Money and these days with a spreadsheet month on month. It is the only way I have to manage my spending.

I still use Money Sunset

Love a spreadsheet here or there too, but for monthly statement reconciliation Money is hard to beat.

Not hard to believe I'm an accountant..

 

[413x]

I think what saves me is I don't eat out (I actually prefer to eat in/takeaway.)
That saves 50 a meal for a couple each time.

I also don't drink really. So again that could easily save 20-30 a week round here if. You otherwise went out.

However I do spend a lot on petrol, simply Driving to Places.

If I go Kayaking that only costs my petrol too.

I do buy trays though like lego sets lol.
And I'll be spending on 3d printing stuff now.
All my camera stuff is bought.

I don't bother with a spreadsheet or tracking
Typically I have 500 - 600 left over ish over a year every month.

 

[Roar87]

The problem is there's a huge demand for houses driven by net immigration figures of around +300k for many years, combined with the fact we haven't also built enough houses for all those people. It has nothing to do with iPhones and people who say that have no clue about basic economics.

 

[Raymond Lin]

Don't drink
Don't smoke
Don't gamble (once a year World Cup Final/Grand National)
Don't eat out much (once a month may be)
Don't get takeaway (once a month may be)

Clothes - I shop at TK Maxx
Car - Just 1 and I keep it for years. Been driving 8 years now and I am on my 2nd car.
Lego - Stopped buying that, takes up too much room
Guitar/amps - Stopped buying that
Tech - Buy it once and keep it for years. iPhone 6, 2012 iMac, 2010 MBP (just replaced it with a new one).
Food shopping - Mix of Sainsbury's, Waitrose, Co-op, Aldi, and Lidi

But I lately I've moved back into upgrading my camera gear again, it's an endless cycle of refresh I guess but at least tax-deductible, it's pretty much the only tech I keep up. Also been trying to use all my free time for travel, so staying in nicer places, eating nicer things.

 

[IvanDobskey]

I bought my house 16 years ago when I was earning absolute buttons. I just scrimped and saved every penny whilst living at home with my parents to save up a deposit. Then I had quite a few years of being very careful with money and missing out on holidays and expensive cars just to be able to pay the bills. Since moving up the pay ladder I have absolutely hammered the overpayments and paid off the mortgage off in its entirety. I just don't think the youth of today have that sort of dedication. They just have to have everything they want and now.

My brother who is 5 years younger than me just spends every penny he earns before it even hits his bank account. He has no savings and no property. And that's just how it is now with most people.

 

[ScoTTyBEEE]

I bought my house 16 years ago when I was earning absolute buttons. I just scrimped and saved every penny whilst living at home with my parents to save up a deposit. Then I had quite a few years of being very careful with money and missing out on holidays and expensive cars just to be able to pay the bills. Since moving up the pay ladder I have absolutely hammered the overpayments and paid off the mortgage off in its entirety. I just don't think the youth of today have that sort of dedication. They just have to have everything they want and now.

My brother who is 5 years younger than me just spends every penny he earns before it even hits his bank account. He has no savings and no property. And that's just how it is now with most people.

Your brother, who is 5 years younger would have been buying a house in 2007/8, whereas you bought yours in 2002. I've made this nice little chart to indicate you're not as amazing as you think you are, and are very likely in the position you're in because you were lucky enough to be born at the right time. Luck, you see, plays an important part in you being able to purchase your home, then go on to bigger and better things. Your brother probably spends all his money because the chances of buying a home are the same as buying a luxury yacht, so why bother even trying.



Do you think you could have found an extra £75,000 considering you were earning buttons as you put it? Or is it possible you could have never bought a house and be in the same position? That chart only goes up to 2011. In 2013 our industrious leaders introduced help to buy and began a second house price bubble. I won't worry you too much with the chart as it's scary, but, you know, iphones, avocados, and so it goes....

 

[Buffman]

I bought my house 16 years ago when I was earning absolute buttons.

... I just don't think the youth of today have that sort of dedication. They just have to have everything they want and now.

How much did your house cost then compared to now? Would a similar low wage pay it.
Edit: the above post identifies this very well

Way for mass generalisations about the youth