Can Savings be just as bad as Debt?

Voyager2002

pqrdef wrote: »

If only. But I just can't. I feel like my hand's on fire if I try to pick up a debit card. And I was vomiting for 3 days when my bonus interest rate expired.

That does sound like you have a problem. However, the problem faced by someone who is seriously in debt (loss of control over their life; constant hassle; stress and worry as a result) is different.

gadgetmind

pqrdef wrote: »

If only. But I just can't. I feel like my hand's on fire if I try to pick up a debit card. And I was vomiting for 3 days when my bonus interest rate expired.

Diagnosis: You're a perfectly normal Yorkshireman.

We're like the Scottish but with all the kindness and generosity squeezed out.

The_Accumulator

My OH and I have a fun fund. We agreed to put freelance earnings in there and use that guilt-free to purchase good times. Salary money is saved, but it makes it worthwhile doing a bit extra on top of the day job when you know it's going to a good cause i.e. US ;-)

sabretoothtigger

Obsessive would be good if there is a compound benefit to it but I think Accumulator is right. Cant take it with you, I imagine some miss the idea of false economy and waste money by trying to save it too much maybe.

I'd back anyone who goes over the top when it comes to paying extra on a mortgage in the first few years, because that has gigantic compound benefit 20 years forwards. Since that often involves newly weds, thats hard to do.

Just saving cash alone now has rubbish benefits, it really barely scrapes over inflation for most but if that money then allowed a lower LTV and fixed rate, you are talking possibly life changing effects if rates should rise greatly. Compound gain, smart cookies

Alex92_2

somethingcorporate wrote: »

A head hunter aged 22 that earns £920k PA? I am somewhat dubious....

No, he worked in recruitment that guy. Recruitment for pharmacutical companies I think. Have no reason not to believe him. His house is easily 3mil+ and has exotic cars and super expensive clothes. Wouldnt see a reason for him to lie about it as its clear hes doing well for himself regardless.

quantic

Small Update: Well as of payday (24th), I'll have my £5,000 saved. Think I am going to stop at this point for a while and enjoy spending a bit more next year as I'm pretty sick of doing without so much now, its been about 3 years since I spent any substancial money.

atush

gadgetmind wrote: »

Cars are a depreciating asset so need to be bought from income rather than capital.

If you don't know what this means, then don't buy a car until you do.

But we saved some of our extra income each month into a regular saver to buy the next car, but at the end of the year it turns to capital so we didn't buy one

The only way to buy with income instead of capital is to take out a car loan which we were avoiding lol. I suppose there is always leasing.

Any

Alex92 wrote: »

No, he worked in recruitment that guy.

Who do you think head hunter is?
Someone who finds and recruits best people for a job. They "work in recruitment".
I suppose they just go out and find the right people for specific job, rather then find a job for specific person..

Obviously there is the other head hunter - someone who chases criminals for reward... and I am sure no one would be surprised if they earned that kind of money!!:D

latecomer

Very interesting discussion (and I realise its an old-ish thread thats had an update)

I am an almost compulsive saver - my OH is not so but still likes getting deals. The difference between us is that I move our savings around chasing the best rate and will stay up another 20 mins to make lunches for us both - she would rather go to bed and buy lunch.

I always dreamed of owning a real fast car and now that I'm in the position to do so (albeit an older one) I cant face spending the money on something that has no real monetary value to me........

YoungBusinessman

Interesting little debate here! My savings tAken a fair whack just recently, paid off £8k of debt in last 2 months to allow me to get a mortgage-which is happening on Friday! So from medium debt and savings to little debt and little savings but gained a mortgage!!! Aim is to save £20k in 2013, £9k is spoken for the rest will be in my account come next Xmas!!