Live for today or Save for the future??

counting_down_the_days...

I have always been a saver, this is the reason I am in a comfortable position now, however, recently OH and I have been disagreeing with this.

I want the mortgage paid off (should be done in about 5 years) so we have plenty money to save and spend when the kids are older. They are currently 3 & 1, so no point going on expensive holidays now, we live in a new build, don't need anything done to the house. Could do with a new car, but I don't see the point until the one we have stops going. As I say to OH what do we need? What do we go without? Nothing. Yes, I am tight and cut back on elec, gas, we don't have sky tv - but we don't have time to watch it anyway! I'm a savvy shopper, and stock up on bogof etc.

His argument is, if we die tomorrow, we will have all that money and not used it! However, what if we live til we're 100 and have no pension and no quality of life, cos we blew all our money in our 30's.

When I met OH he had debts and it stressed him out, I cleared them and set up his 'piggy banks' which he was completely against, as he "only needs one bank account". He paid me all my money back and now has no money worries and saves each month.

I suppose it's about getting a balance. I would like to reduce my hours at work, but don't want to until the mortgage is paid off, then I will have more money so can afford to. However, am I missing out on my children when they are so young? If I forget about the mortgage and reduce my hours, I can just pay the mortgage for a bit longer.....

I don't know what the point in this post was!!

Biggles

counting_down_the_days... wrote: »

When I met OH he had debts and it stressed him out

I think you know that's the way he'll take you again, given half the chance.

Who plans their finances around dying tomorrow (er, both of you - in the same tragic accident, presumably)?

Glen_Clark

The only sure way to be sure of not losing your money is to spend and enjoy it - then nobody can take it away from you. This is particularly so now that all 'safe' investments pay below the rate of inflation, and the Bank of England is no longer very safe anyway.
I donn't waste money for the sake of spending it, but I buy everything I want and don't work more than I want to. Currently not working, bought a motorhome and touring Europe :j (hence the intermittent Wi Fi)

Glen_Clark

Biggles wrote: »

Who plans their finances around dying tomorrow ?

Those who are permanently in debt I suppose, and why not with interest rates below inflation. If you die in debt you have made a profit

counting_down_the_days...

Glen_Clark wrote: »

The only sure way to be sure of not losing your money is to spend and enjoy it - then nobody can take it away from you. This is particularly so now that all 'safe' investments pay below the rate of inflation, and the Bank of England is no longer very safe anyway.
I donn't waste money for the sake of spending it, but I buy everything I want and don't work more than I want to. Currently not working, bought a motorhome and touring Europe :j (hence the intermittent Wi Fi)

I couldn't do this - I love your care free attitude and would love to take a year out to do something similar. However, shallow as it may seem, when I left home at 16 with nothing, all I wanted was a house to call home. I worked very hard for 2 years and bought my first flat. I now have my dream house and it will be all mine in 5 or so years. I also have two young children, which I chose to wait to have, so I was in a solid financial position to support them. I want the mortgage paid off while they are still young as they are too small to notice if we don't have the latest gadgets. I will then be in an excellent position to support them with what they want, uni, apprenticeship etc.

counting_down_the_days...

And yes, savings rates are atrocious. I actually had my childrens money in a savings account in my name, as even after paying tax it was getting a better interest rate :eek: Hardly encourages children to save :mad: Even ISA's are pretty poor at the moment.

Most of my savings are in company SIP and Sharesaves. I just moved my £2.5k from Santander's 5% account to Nationwide's 5% account, but the rest is only earning about 3%

Linton

counting_down_the_days... wrote: »

.....

His argument is, if we die tomorrow, we will have all that money and not used it! However, what if we live til we're 100 and have no pension and no quality of life, cos we blew all our money in our 30's.

...

Perhaps some mathematics would help..

We dont know his age, but if he is a 40 year old male the government actuarial data shows a 0.16% chance of dying in the next 12 months. The chance of reaching 100 is about 16% - 100 times more likely.

redbuzzard

counting_down_the_days... wrote: »

I have always been a saver, this is the reason I am in a comfortable position now, however, recently OH and I have been disagreeing with this.

Well, it's not binary is it? "Expect the best, prepare for the worst, and prepare to be surprised", as some sage said once.

You shouldn't live solely for tomorrow, which might never come, nor should you live only for today.

I'd say you're sensible. His history suggests he isn't, it that way at least. People spend money because makes them feel better off, and in the process makes them worse off.

You might gently remind him that the money that is burning a hole in his pocket is only there because you haven't been following his philosophy.

If that's a bit confrontational, buy him "Rich Dad, Poor Dad". It goes on a bit, making a point that would fit on two pages, but it puts silly spending in perspective.

You should put effort into having an enjoyable life though. Have some nice, non-extravagant bucket and spade holidays that the children can enjoy. Get out for walks when the weather's good, eat well, socialise with people you like, get into some community stuff if the opportunities are around you, and make the best of every day. Put the occasional meal out, or weekend away, into your budget.

It's people that matter, not "stuff". Trite but true.

counting_down_the_days...

We do have £30 a month budget for days out! :j To be honest, we rarely spend this much as I usually get groupons, or we go for a picnic at the beach etc.

I'm a great believer in Sun Holidays, as a family, we've mastered a great tightfisted sun holiday :rotfl: It costs me more not sending the two of them to nursery for the week than it costs for the holiday, including petrol, entertainment and food for the week We tend to do two of these a year as the kids love it.

When I said about holidays, OH and I used to enjoy 2 or 3 foreign holidays a year, plus a couple of weekends away in the UK. The thought of taking young kids on a plane just sends me into panic :eek: I don't think any of us could really enjoy ourselves and it's not worth spending lots of money on a holiday like that. The Sun holidays suit us perfectly.

redbuzzard

counting_down_the_days... wrote: »

We do have £30 a month budget for days out! :j To be honest, we rarely spend this much as I usually get groupons, or we go for a picnic at the beach etc.

I'm a great believer in Sun Holidays, as a family, we've mastered a great tightfisted sun holiday :rotfl: It costs me more not sending the two of them to nursery for the week than it costs for the holiday, including petrol, entertainment and food for the week We tend to do two of these a year as the kids love it.

When I said about holidays, OH and I used to enjoy 2 or 3 foreign holidays a year, plus a couple of weekends away in the UK. The thought of taking young kids on a plane just sends me into panic :eek: I don't think any of us could really enjoy ourselves and it's not worth spending lots of money on a holiday like that. The Sun holidays suit us perfectly.

We had annual gite holidays in France when ours were young. Always chose somewhere less than half an hour from the sea. Used to be very cheap in those days, I think we paid as little as £50 a week in the early 80s.

Chargem

"Live for today or Save for the future" is a false choice I'm afraid, which equates spending money with happiness. It may be shocking revelation for the spendier-types, but people who save money are still living today, and I'd be willing to bet that on average people saving 40%+ of their income are happier than people saving 0-10% of their income.