Am I spending enough!

InsertWittyName

stphnstevey wrote: »

I can't speak to my parents about this as they are still at the same level of income as when they brought me up and I feel awful speaking about what to spend spare cash on when they don't have the same.

How about helping out your parents with some of the spare cash after you've worked out what you need for yourself? They certainly did a good job bringing you up to be so hard-working and money savvy.

stphnstevey

InsertWittyName wrote: »

How about helping out your parents with some of the spare cash after you've worked out what you need for yourself? They certainly did a good job bringing you up to be so hard-working and money savvy.

I thought this might come up and I have done, even as a child I leant them money (often not getting it back). I didn't ask for anything when going through uni and have helped them finacially to get a place back in the UK when they had moved abroad and needed to move back to UK.

innovate

Pensions has been mentioned once already, but I mention it again.

Before I would fritter any money away on cars or holidays, or giving it to anyone else, I would make sure I have a a sound plan for where my money will come from once I stop working. The earlier you start on that, the more comfortable your older days will be, and if you get it right, you might even be able to retire a lot earlier than the 'official' retirement age.

happypod1

My advice would be to filter your money saving into making sure that you get a good deal on what you do decide to buy and then you won't feel as guilty spending it. My second peice of advice is decide what is important to you - for me it's not the material things, it's experiences and you've mentioned travel so go for it - you only live once. Do you enjoy your job? If not so much then you might want to save to retire early.

heloid

The rule I live by is:
1/3 on living (rent/food/essentials)
1/3 on fun (going out/holidays, more than needed clothes)
1/3 on investing/saving

I earn as much as you but no where near you on the savings investments front (I did move countries and travelled for a year ^^)

Probably a bit wasteful but I'm in my 20s and you're only young once

lazer

OP - I ask myself the same question sometimes.

I used to live in a dump of a flat because it was cheap, even though i could afford better (I was renting but had no plans to buy at that stage!)

I became addicted to saving, i loved watching the bank account grow, but i was missing out on things - I wanted to go to concerts, but refused to pay the £200 for the festivals i wanted to go to as it wasn't good value.

Very slowly i'm changing and started spending money, I have just bought a new house, and buying stuff for it that isn't cheap rubbish!

I ask my myself questions before purchasing something

1) Can i afford it
2) Do I need it
3) If i don't need it, will i use it?
4) Is this the cheapest I can get it?

This stops me spending silly money (although after buying the house and paying for our wedding later this year, I no loney have excess money to spend on things i don't need!)

stphnstevey

I like the idea of having spending/fun money seperate

Also, value for money is a big one for me, the guilt afterwards if its not is immense

I also like the questioning yourself-but I think I need to find the right questions for me-maybe
i) what enjoyment would I get from this?
ii) is there a cheaper way of doing this without comprimising the level of enjoyment
iii) What else could I buy for that money and would that give more or less enjoyment

An example of a decision I find hard is on our next holiday we are looking at swimming with dolphins. But it's extremely expensive for 30 mins (10 mins actual I suspect) interaction. I start thinking that we could go on a whole cheap holiday for the same price! But it has been something my wife has always wanted to do, so I'm really torn. My value for money instinct has been looking at swimming with manatees instead, which is a third the price for 6 times as long.

Also I keep thinking, when I have xyz amount more money, it would be easier to make the decision to splash out on things. But I don't know what specific amount that is!

I would also like to reward myself for good investments eg if a house goes up in value and I sell it, reward myself with that car I always wanted

I'm also changing my mind slowly about pensions-shouldn't I use the money now while I am young and healthy enough to enjoy it, rather than saving it for when I am less fit and healthy?

innovate

stphnstevey wrote: »

I'm also changing my mind slowly about pensions-shouldn't I use the money now while I am young and healthy enough to enjoy it, rather than saving it for when I am less fit and healthy?

You can google a number of places, like this one from the CAB, which will all tell you the same - the earlier you start your pension, the more time it will have to grow, and the more you will gain from compounded growth. Plus, both, your employer(s) and the taxman contribute - - - more years, more contribution, simples.

The CAB site doesn't have any numbers to illustrate the effects of early pension investments, but you can find such examples all over the web. Here's one from Standard Life that is a reasonable illustration (note I am not saying you should start a pension with them - - there's a Pensions board here that you can get a lot more info from).

I know people who have paid into one or the other (and often several) pension scheme since they were 18, and could happily retire at the age of 51. They didn't put all their money into pensions - they had also paid off their mortgages (an essential part of a carefree retirement) by the time they retired. And they had plenty of good holidays, nights out, weekends away, special treats for birthdays and anniversaries etc etc.., on salaries not dissimilar to yours. You need to strike a balance between all your needs, or perceived needs, and you need to think long term.

Never have all your eggs in one basket - but make sure you have some in each of the essential baskets :-).