What are you saving for?

evenasus

berbastrike wrote: »

oh man you could retire now! what age are you if you don't mind me asking?

Too old for you I would think.

Actually, I retired aged 55 but that was over 10 years ago.

I'm lucky that my husband had a very good job and now pension.

vacheron

When I was still in my early 20's I was fortunate enough to have saved a reasonably significant sum and reflecting back I believe there were 3 major benefits from doing so:

The power of aspiration.
Aspiring to something that is just out of reach is a powerful force which encourages you to spend (after all, this what 99% of advertising is based around)!
I remember the day that I walked through what was then the largest shopping centre in Europe and it occurred to me that I could now afford to buy almost any item I wanted from my savings. Almost instantly my attitude changed and the things I once aspired to lost a lot of their appeal simply because they were now easily attainable.

"Easy come easy go"
Friends of mine used to often say "oh, you could afford that, why not just buy it", "If I were in your shoes then I would buy XYZ" however in reality it took me a long time to save the money and so you don't want all that hard work to be undone on a whim. I'm sure they were thinking from the perspective of them suddenly having the money appear, not gradually building it over time, and if it had came my way like that, such as an inheritance etc, then I may have spent it more readily too.

A lifetime of earnings vs interest
Probably the most underestimated benefit is never to have to pay anyone else for credit / loans / the dreaded PPI, and associated bank charges for going overdrawn and bouncing payments now and again, and instead to earn income from your savings in interest / dividends. Over the decades this adds tens, if not hundreds of thousands of pounds to your overall financial health compared to someone who has been reliant on credit.

perth_worker

What are you saving for? - good question! I often ask this question to myself and am still looking for the answer.

I have saved £55k so far (working full time in the mining industry in oz and having a small pt business) but man am i exhausted and fed up of work.

anyway i think i am saving so in a few yrs i can work part time on my business as that is what i enjoy or live off the interest in bali or something - not sure if either will ever happen but one can only hope

RoxRoxBling

berbastrike wrote: »

saving for a deposit/house. will need to move out in 3 years at 25. I am at £36k in savings right now, hope to save at least 60k, top potential 110k. Then once house is paid for, save £150k and live off interest, I am determined to make this happen

Wow.. You've more saved than me and we're around the same age!!!
(Also are you single) :rotfl:

RoxRoxBling

evenasus wrote: »

I hope I didn't come over as tight. We definitely don't scrimp or go without.

For instance, we've spent, in the past two months, £4300 on three new TVs - Samsung smart ones.
Not that there was anything wrong with our old - 3 year old TVs - just fancied the Samsung smart ones.

We have everything we need - Have in a fair sized house with a swimming pool in the garden - Been to quite a few countries. Lived in Africa for several years.

I get more enjoyment spending on my sons and grandchildren, than spending on myself - just how I am.

Oh no didn't come across as tight. I can totally understand, and in all honesty I'm the same, which is why I have savings. (Which at the moment are my light as my job's not looking promising) I don't willy nilly spend my money on things, but if I need/want something then I do buy it. I too enjoy spending money on family. But I don't buy big things like TV's and other electrical goods, (but that's partly because I still live at home and don't have a need to)

RoxRoxBling

Niv wrote: »

The problem I think I am developing is that I dont like spending money on 'non essential' things. I really struggle with myself when I buy something for me.

Agreed. Another thing I get like is, that it's taken me ages to earn the money (yes on minimum wage) and even longer to save the money, So when it comes to spending I really want to make sure that my money gets spent right, and carefully. And it's just a way I've been since I started work. In all honesty, 6 years later, I am glad of how I manage my money. Because now, at 24, I can think about saving for the big things in life, and it seems simple!

System

RoxRoxBling wrote: »

Wow.. You've more saved than me and we're around the same age!!!
(Also are you single) :rotfl:

:laugh:

I am also the exact same what has been said above, I have money to buy ipod, new tv, new computer but I would rather save because I think it is worth it. How can graduates with thousands pounds of debt and no guarante of a job, move out of home. I don't earn lots either but have started saving since 18 and it keeps building and hopefully I will get a great deal on mortgage when it comes to it, so more money savings :j