Luxury

patwa_2

Hi. I just thought it would be nice to have one of those forum debates. The topic - the line between need and want.

I was thinking to myself about how people spend their money, and also about how people manage buying things that they both want just for their own pleasure or need as a matter of necessity.

There are thousands of people, without children or other dependants who die leaving thousands in their bank accounts or in stocks. Thousands which they never spent a penny of, often for decades. Thousands that will probably end up going to the state or the banks. Thousands that they could have used to treat themselves, improve their quality of life, anything just to brighten up their days.

I can't help feeling envious and somewhat disgusted at these people, even though we all say we shouldn't think ill of the dead. There are people scraping just to get by from day to day, wishing they'd win the lottery or find that some long deceased relative had left them something, not to live frivulously, but just to pay off their debts, to get back on an even keel. And I ask myself, what is the point of saving to the point where you're actually wasting the saved money instead of using it?

Second thought, and somewhat along the same vein. What's the line between sensible saving, moderate living and living a pleasurable life? Is it OK to buy that 32" LCD, £4000 computer and fly around the world first class, if you're going to earn that money through matched betting later? Is it right to buy yourself a custom-built beach-house, because your stocks gained 400% in the last year? Where does the necessary money end and the luxury money begin? And how much is a 'sensible' amount to have for that rainy day?

Debate.

Astaroth

I personally have found these decisions have become harder and harder as my career progresses.

4 years ago when I and the better half were still a call centre agents we lived more or less on our earnings with little money for luxuries (using almost any definition) and certainly no money for savings.

Fast forward to now and our household income is now over 4 times what it was then but because the progression has been so rapid it does mean that we dont have the trappings that would typically be associated with our income (have had debts to pay off etc). The ongoing question is therefore how to split our surplus monies at the end of the month between rain day savings, buying a property and starting to get the luxuries like a nicer car or holidays etc.

How much is right for a rainy day is all about how risk adverse you are. Thankfully we both work for a multinational bank and therefore the risk of it going bust is very low, we both have 5 years service and 3-6 months notice periods so redundancy packages would be reasonable enough to cover our current commitments for over a year but with the number of jobs advertised for project managers at the moment I would imagine the out of work aspect would be measured in weeks rather than months or years.

I am very much in favour of the "your earned it so spend it" mentality - my mother on the other hand has saved for years and still saves now that she is only on a pension as she feels she has an obligation to leave a reasonable inheritance where as I would be much happier if she enjoyed her savings now rather than only using 1 room in the house to save having to pay for heating the other rooms so that she can leave me an extra £1000 when she is gone.

windswept

I would like to leave nothing in my bank account when I die, life is for living and is far too short, yes we have planned for the future, but not to the detriment of the here and now. I want to see as much of the world as I can, as soon as I can, you just don't know what tomorrow might bring. my in-laws saved all their lives , planning to do everything once they retired but it never happened, my m-i-l died aged 57, leaving my f-i-l with plenty of cash but wondering what to do with it all, all he does now is buy car after car, which of couse we don't begrudge if that makes him happy. I have got at least the next 5 years worth of travelling planned, Mexico in April, China in 2008, Australia and NZ 2009, and a South American or Alaskan cruise for our 25th anniversary in 2010. we spend almost all our joint income but have a very nice life,( it took us 8 years after my hubby left the air force to get back to level we were at then). we could scrimp and pay off our mortgage in 5 years but I really dont see the point. what is life for if not to enjoy?

roswell

I would suggest that the people that died with those amounts in the bank ... werent banking on dying.

Eg if anyone with a rainy day fund for 3000 died was it a rainey day fund or money that they didnt spend ??

personnaly given the choice i would save now for the next 20 years so that i dont HAVE to work till retirment ... but if i die in that time .... you can say the same about me.