Have I saved enough money...

[Irish_Tom]

Have you read The Psychology of Money by Morgan Housel?

One of his pearls of wisdom is that you don’t need to save for a specific goal (like a car or a house) but saving for saving’s sake gives you flexibility and security when life throws you a curve-ball.

I would say having a year’s salary in the bank gives you a decent amount of freedom, but as you said, it’s not FIRE money.

I think you can stop saving towards your ‘safety net’ but now maybe start saving towards a specific goal or goals.

You’re already doing some cool holidays but is there a trip you want to do that’s another level up in terms of cost? Start planning that and put what you were saving into the ‘super holiday fund’.

 

[Uther]

413x disappear for a bit and when you come back change your location on the forum from 'Llaneirwg' to 'NZ'

 

[RockLobster]

Similar position but slightly older at 46. No mortgage, 150k in the bank. I put 40% of my salary into pension. I drive around in a 15 year old Suzuki sx4 and won’t even upgrade my iPhone 10. I buy clothes from supermarkets. People think I’m skint. Am I happier with all this absolutely not.

 

[hornetstinger]

Similar position but slightly older at 46. No mortgage, 150k in the bank. I put 40% of my salary into pension. I drive around in a 15 year old Suzuki sx4 and won’t even upgrade my iPhone 10. I buy clothes from supermarkets. People think I’m skint. Am I happier with all this absolutely not.

You will just be able to afford a 5090 with that.

 

[Journey]

You've got nothing to do as you're not having any kids.

So spend your money, it makes no difference if you end up skint as no one is relying on you for anything.

 

[200sols]

Just stop working so hard, cut down your days or something. Spend the days walking the hills. All the 'live for now' comments are fine and all that but most people don't die that young so having savings for a decent retirement is still a good choice..

 

[koolpc]

No point in having security if you aren't taking risks. Have you visited a psychologist? You clearly have something going on.

Totally daft reply..

 

[BUDFORCE]

OCUK party.

You supply the alcohol, venue, local accomodation and food.

 

[dlockers]

OCUK party.

You supply the alcohol, venue, local accomodation and food.

You forgot the colourful leggings

 

[swillsy]

Well done!! The difference between 50k and 100k in todays money is an income of £2.5k a year based on 5% returns for doing absolutely nothing if you invest it safetly.

Also the people saying spend it/you could die tomorrow - this is a risk however there is a reson the average age is what it is - because on average luck you will live till you're 89 and you will have a better time with money.

 

[BUDFORCE]

You forgot the colourful leggings

I figured you already have enough pairs of those we could all borrow.

 

[Feek]

I'll put an absolute number on it as it is probably relevant. 50k

This is going to sound like nothing to some and a lot to others

To me, that's a huge amount. If I had that amount of money stashed away, I'd be using a big chunk of it to have double glazing fitted to my house so that I could actually turn the thermostat up above 17°C in the winter. At the moment, if I put it any higher, the windows are so leaky that it would need to be running continually just trying to hold the house at 18°C and costing a fortune. 17° is the highest I can keep it without bankrupting us. We just wrap up with many layers in the winter.

I'm sat here thinking.. Do I need to save anymore? My parents are wealthy but miserable. I don't want to make same mistakes.

If this is a buffer you're happy with, keep it at this level and spend anything extra on yourself. Have a good time, enjoy yourself because you've earned the right to do so.

 

[jeffspuds]

To the OP if not already get out there get that Gucci belt and corner sofa live the dream.

 

[Uther]

on average luck you will live till you're 89 and you will have a better time with money.

Yes, giving it to a care home at a grand a week.

 

[413x]

I'll condense a reply to some of the more impactful posts.

After getting pushed out of my job 6 months ago and not being able to find a new one, my advice is don't put yourself on the job market if you don't have to (contracting market is just as bad). When you next end up on the market if you choose to move into contracting that's cool ofc. You can always go perm again if you want.

Obvs no point talking about years of early retirement, but a consequence of planning for that is it's kinda like a massive emergency fund. I think the usual advice about "a few months to 1 year of living expenses" worth of emergency fund just doesn't cut it in today's job market.

I assume this is just another angle at your usual "what am I doing with my life" line of thinking which you've asked several different ways, but ultimately you either want to make a major change or not, only you can decide.

Saving is often talked about in the context of goals - what do you want to save for? That's a homework question I'll leave you to ponder.

Kind of this. I'm kind of in the trap with dog and partner in that I don't think I can do the emigration thing. Or it's just my own mind pretending I'm trapped to make life easy.
I think I'm facing it more but I'm dragging it out over time. You know.. It's easier to carry on vs make a big change. Probably in conflict over this.

Have you read The Psychology of Money by Morgan Housel?

One of his pearls of wisdom is that you don’t need to save for a specific goal (like a car or a house) but saving for saving’s sake gives you flexibility and security when life throws you a curve-ball.

I would say having a year’s salary in the bank gives you a decent amount of freedom, but as you said, it’s not FIRE money.

I think you can stop saving towards your ‘safety net’ but now maybe start saving towards a specific goal or goals.

You’re already doing some cool holidays but is there a trip you want to do that’s another level up in terms of cost? Start planning that and put what you were saving into the ‘super holiday fund’.

This is my position in my head. I feel no pressure over redundancy (as an example) now. As I know I have a long notice period, good savings and ability (if I want) to take a risk. What that risk is.. And making a decision on it.. Is the question I need to answer.

This. 413x, you're so close, so close that the answer is in even in your post.

I agree with this. I've put off big changes. But I also want it. To not just go with the flow. But I'm not bold enough to do it.

What are you saving for? My wife recently passed away in her early 50's.
You might live to 100, you might die tomorrow.
Live now.

Dad died at 58. Didn’t get to spend a penny of his pensions. Since then. I contribute the minimum to mine that my employer will match.

I am saving for a house extension. But apart from that. I am the sort who would just keep 6 months net salary as a buffer and spend the rest. I don’t have any interest in accumulating vast wealth or having loads of money in retirement. Who cares about having loads of money when you’re old. You won’t be able to enjoy it much anyway because you’re old.

So buy the nice car, go on the fancy holiday. **** it.

So Sorry to hear this both. It's my partners mum's passing that's really hit me. She was young ish and they let time slip and basically burnt time. It's the first loss that's really made me question everything.



I kind of expected more matter of fact replies.. Yes that's enough of a buffer. No it's not. Rather than this deeper narrative!

 

[413x]

Just stop working so hard, cut down your days or something. Spend the days walking the hills. All the 'live for now' comments are fine and all that but most people don't die that young so having savings for a decent retirement is still a good choice..

This was part of the reason I got my hiking + camping set up.
I absolutely need to cut my hours/change jobs.
Right now I finish after dark. Which basically wipes out 5 days a week.

Probably easiest short term win is to move from. 9-5, 5 days a week to something else.
More holiday
Part time
Condensed hours.

All Will take a job change. And it does seem hard to find decent part time. Hence the temptation of contract.

 

[Journey]

I kind of expected more matter of fact replies.. Yes that's enough of a buffer. No it's not. Rather than this deeper narrative!

I gave to a straight reply, you've ignored it and looked at the deeper ones. :S

 

[413x]

To me, that's a huge amount. If I had that amount of money stashed away, I'd be using a big chunk of it to have double glazing fitted to my house so that I could actually turn the thermostat up above 17°C in the winter. At the moment, if I put it any higher, the windows are so leaky that it would need to be running continually just trying to hold the house at 18°C and costing a fortune. 17° is the highest I can keep it without bankrupting us. We just wrap up with many layers in the winter.


If this is a buffer you're happy with, keep it at this level and spend anything extra on yourself. Have a good time, enjoy yourself because you've earned the right to do so.

I feel like it is a good buffer.
50k covers everything I can think of right now. New car + new boiler + job loss + expensive vet bill still would be OK.
Ah yeah I know the feeling. Windows here are dire. If this was a long term house I would be investing into it.

To be honest my mind is even fighting itself if I like this living in one place "standard template" for living life.


If I could choose a realistic setup. I'd buy a van, work 6 months Of the year, and travel around for the rest. This pulls me back to contracting. I obviously know this isn't possible. But even random 3 months off periods between jobs would work as if I got a job I could be back home quickly.

This level of chaos and unpredictability appeals a lot.

 

[413x]

You've got nothing to do as you're not having any kids.

So spend your money, it makes no difference if you end up skint as no one is relying on you for anything.

I gave to a straight reply, you've ignored it and looked at the deeper ones. :S

Ah but it does.
If you have no one relying on you, you also have no one to rely on.
As much as I'd love to truely blow it all. I know realistically I will need to pay out for care probably at some point.

I feel spending it all is a bit to "YOLO".
I mean I've saved up to be independent.

 

[dlockers]

I feel like it is a good buffer.
50k covers everything I can think of right now. New car + new boiler + job loss + expensive vet bill still would be OK.
Ah yeah I know the feeling. Windows here are dire. If this was a long term house I would be investing into it.

To be honest my mind is even fighting itself if I like this living in one place "standard template" for living life.


If I could choose a realistic setup. I'd buy a van, work 6 months Of the year, and travel around for the rest. This pulls me back to contracting. I obviously know this isn't possible. But even random 3 months off periods between jobs would work as if I got a job I could be back home quickly.

This level of chaos and unpredictability appeals a lot.

If you want a direct response I think you need to bin your Mrs off and acknowledge your life isn't over.