Saving money vs doing more

Guest2 said:
At the moment I am in a position where I could save around £1000 a month.
I wouldnt be able to do what I do currently such as go on quite a few holidays, buy nice things, go on big city nights out, days away etc. but could save it for a house deposit or something else. I do have a private pension so am saving some which my workplace matches.

Recently I have been to Iceland for 4 nights which was fantastic. Day trips such as glacier hiking, ice climbing, snow mobiling, northern lights and also been skiing in January.

I am in the mindset that I would rather have fun in my younger(ish) years whilst I am able to do these types of things rather than save it all for when I am old and decrepid (or even die a few years into retirement as my grandad did after working hard all his life)

Am I being foolish not saving as much as I could? Do you have the same mindset as me or the opposite? Just curious to hear people views on this
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You do with your life, what you feel is right. There are no rules about what you must do.
Personally I think getting shacked up with someone having 2.4 kids and a mortgage keeping me a slave to the system would be my worst nightmare, others think that is the meaning of life.
Do what makes you happy..
You are a long time dead!
 
Save hardcore for a set period of time, set yourself a goal and smash it! (for a deposit or whatever). Get a second income to help if needed.

Once you have kids and house........you'll be glad you've been financially responsible.

My son is 14months old, think we're putting about 400 a month away at the moment, just for his high school and college funds.
 
Deus Ex said:
Save when you are young and you will reap rewards later on in life. You'll still be able to ski etc in your late 30s-40s. Except after a decade and a bit of austerity you should have a house paid off and investment portfolio to help with things. If you're very smart you might be able to retire early.
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God that sounds dull. I'm 40 and I've snowboarded at least three times a year every year for the past decade and at least twice a year during my 20s. Yes, work hard and save what you can but whatever you do don't put living your life on hold for the sake of security. During the downturn my income plummeted but I still found money for holidays and sports I enjoy because they are important to me.

The best way to secure a better future is to earn more not squirrel away from a meagre amount (not saying you earn a meagre amount, just that a focus on best use of time is better than on best use of money).
 
Don't forget sorting out your monthly bills - switch to cheaper electric/gas internet/tv/phone that does the same for less money and your monthly saving will increase.
 
After all bills etc.

Its save 850 spend 250 on anything i wish, or maybe split the 250 and save some that for something useless.

First thing i would do is make sure you have a full 3 months full pay tucked in a ISA, then look at it again.
 
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AndrewNR said:
I'm 32 and have had a mortgage since I was 26. In that time the value of our house has increased from £160,000 to £220,000. In four years time it will probably be £240,000+ .
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And everybody else's house has gone up by the same percentage. So unless you downgrade you're not really gaining anything.
 
I'm saving, not sure what for exactly, but I know I'll be thankful when I need it.
Want to go on holiday or something soon though.
 
It's all about a balance.

I'm in my second year at uni and saving £250 a month, but I still have enough to visit places, eat out occasionally, buy nice things every so often. Saving every single penny will just mean you do nothing, spending every penny now will make you regret it later.
 
chief barker said:
And everybody else's house has gone up by the same percentage. So unless you downgrade you're not really gaining anything.
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My point was that if he waits 5 years instead of 3 years to get his deposit in place he'll probably end up needing nearer 40k not 30k. So then he has to save up for another year etc etc.

He'll probably end up buying a 1-bed in London for £7,000,000 in 2020 and the bubble will burst. :p
 
Skidder said:
God that sounds dull. I'm 40 and I've snowboarded at least three times a year every year for the past decade and at least twice a year during my 20s. Yes, work hard and save what you can but whatever you do don't put living your life on hold for the sake of security. During the downturn my income plummeted but I still found money for holidays and sports I enjoy because they are important to me.

The best way to secure a better future is to earn more not squirrel away from a meagre amount (not saying you earn a meagre amount, just that a focus on best use of time is better than on best use of money).
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Mate luckily I have a rewarding profession starting next year so I find myself satisfied with what I do, if not always happy, though the job is not that well paid. And no, living within your means and saving early on, means due to compound interest and the way money is created, you will be wealthy later on and free to do what you want with your life. And for me, I'll hopefully be on £33000 next year with free accomodation, so realistically saving 15,000 should not be tricky with a good lifestyle and pension contributions, student loan payments etc taken care off. if I save £15000 and historic stock market returns (7.%, which is a low estimate) carry on in 30 years time it will be £114,000. I'll then be 55 odd. So if one carried on that level of saving for 10 years or increases it, then damn, if they live healthy lives, they could have a long time of healthy free life afterwards, all just by avoiding consumerist trappings of a £3.00 costa coffee everyday and a £5.00 lunch and all the other **** which people blow cash on.
 
Skidder said:
I don't really save anything. I fly by the seat of my pants pretty much.
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Sounds like me too. I'm not really in a position to save, have no intentions of buying property, and keep my head above the water. I live quite comfortably, we have holidays and go out quite a bit, but I'd far rather be doing that than saving money for some undefined time in the future when I'm allowed to have fun because I have a house and some savings stashed to use in 30 years time.

Never even wanted to own a house, actually, and certainly not going to inherit one from my family. Be nice to move around a bit more, but that'll depend on job postings. That said, I wouldn't change my life for anything. I'm not rich, and likely never will be, but I'm certainly happy, comfortable and enjoying every day. i know I've already seen and done more in my life than many people earning 10 times what I do, and I'd choose my times over theirs any day of the week.

Basically (OP) there is no rule about this, you're in a very fortunate position, but think about what you want in the future, and the short term - just don't change your plans because you "should", that's simply nonsense. I'd be inclined to save a little and enjoy the rest, though the saving would mostly be to do something I wanted should the opportunity arise.
 
Only +1000 a month? You are pathetic Sir.

Be like a true man and live beyond means and be -2000 a month!

But seriously,

As I have found out, spending more and doing "stupid" things is actually a good investment into yourself... Usually you gain valuable experience through these things and money spent on them works out as a great investment into your own personality and skills.

For example:

Even if you blow your spare cash on coke, most likely you will have to battle-through addiction at some point, if you succeed thats immense amount of experience and skills you earn on personal level which will help you in future and put you above others.

However, theres a risk you will end up as a crack-head on the corner.... but who cares...
 
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Deus Ex said:
Mate luckily I have a rewarding profession starting next year so I find myself satisfied with what I do, if not always happy, though the job is not that well paid. And no, living within your means and saving early on, means due to compound interest and the way money is created, you will be wealthy later on and free to do what you want with your life. And for me, I'll hopefully be on £33000 next year with free accomodation, so realistically saving 15,000 should not be tricky with a good lifestyle and pension contributions, student loan payments etc taken care off. if I save £15000 and historic stock market returns (7.%, which is a low estimate) carry on in 30 years time it will be £114,000. I'll then be 55 odd. So if one carried on that level of saving for 10 years or increases it, then damn, if they live healthy lives, they could have a long time of healthy free life afterwards, all just by avoiding consumerist trappings of a £3.00 costa coffee everyday and a £5.00 lunch and all the other **** which people blow cash on.
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I am not knocking you or saving in general and I understand compound growth (I am an economist). The example you give is a little flawed as you do not adjust for inflation.

Looking at the S&P 500 from 2000 to 2014 the compound annual growth rate is 4.2% if you adjust this for inflation it is just 1.91%

http://www.moneychimp.com/features/market_cagr.htm

That date range is a bit arbitrary but you get my drift. However, that is not important, my original point was do live life when you are young (well throughout your life!) Getting bogged down in living sensibly for the sake of future security at the expense of smelling the roses is a shame. I am not saying don't make sensible decisions (I have made quite a few, sometimes unintentionally) just don't only make sensible decisions.
 
Feef said:
Sounds like me too. I'm not really in a position to save, have no intentions of buying property, and keep my head above the water. I live quite comfortably, we have holidays and go out quite a bit, but I'd far rather be doing that than saving money for some undefined time in the future when I'm allowed to have fun because I have a house and some savings stashed to use in 30 years time.
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This is all fine but you are just thinking of the now. The "you" of tomorrow may well be a very different person to the "you" of today. For example I am not hugely similar in thoughts, attitudes and outlook to how I was 15 years ago. I'm not a different person but am very changed.

I could use the words "don't rob your future self", but robbery is a very strong word. All you need to do is give consideration to who you might be and what you might want in the future. None of this means putting your life on hold now, but equally you need to give thought to what regrets the future you might have.
 
Feef said:
Sounds like me too. I'm not really in a position to save, have no intentions of buying property, and keep my head above the water. I live quite comfortably, we have holidays and go out quite a bit, but I'd far rather be doing that than saving money for some undefined time in the future when I'm allowed to have fun because I have a house and some savings stashed to use in 30 years time.

Never even wanted to own a house, actually, and certainly not going to inherit one from my family. Be nice to move around a bit more, but that'll depend on job postings. That said, I wouldn't change my life for anything. I'm not rich, and likely never will be, but I'm certainly happy, comfortable and enjoying every day. i know I've already seen and done more in my life than many people earning 10 times what I do, and I'd choose my times over theirs any day of the week.

Basically (OP) there is no rule about this, you're in a very fortunate position, but think about what you want in the future, and the short term - just don't change your plans because you "should", that's simply nonsense. I'd be inclined to save a little and enjoy the rest, though the saving would mostly be to do something I wanted should the opportunity arise.
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That doesn't sound like me! ;)

I'm a big believer in putting money into property and have been doing so since 21. I'm not saying don't make a secure life, just don't miss life
 
It's all about finding a balance. Generally speaking though, holidays and and experiences are not purchases that tend to give you post purchase regret - it's "things"; new TVs, new phones, new whatever that will give you that feeling.

So I say cut down on buying "stuff", keep enjoying your holidays and so on and try to save a bit in the meantime.
 
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