At what point do you stop saving?

Porcupine

I'm slightly puzzled by the approach of attempting to spend so that you meet the Grim Reaper with 50p in your pocket. This seems to take 'you can't take it with you' a bit far.

I'd say that the main thing is to set up your wills so that it goes to people who will appreciate it. That might be family, it might be new kennels at the Dogs' Home, whatever you like. Then, at whatever stage you go, either you'll have enjoyed it or somebody else will. It doesn't bother me particularly if the person enjoying it isn't me and I'm not there to see it.

Thrugelmir

Paul_1977 wrote: »

Ok, interesting replies.

What if it was highly unlikely that you would reach the age of 65, (I am aware some on here will be over 65)?

When do you stop saving if you are going to die before you are old? If it was almost guaranteed you would not reach old age, not even reach 45?

A close work colleague of mine who never drank or smoked and was perfectly healthy. Developed a brain tumour when he was 38. I visited him weekly in a hospice for 7 months.

My grandmother lived until she was 4 months shy of being 100. Looked after herself at home. Without the need of any care workers.

Life has no rhyme or reason. Though as we get older it is a state of mind. Making the most of every day. As today may be our last.......

chucknorris

It is a very important question OP, and I would say that an almost equally important question is when do you stop investing.

I'm tempted to say that I'm still figuring it out, but in reality I (we) should start spending now. My problem is that I have found the job that suits me best, lecturing, rather than working in industry, and the public sector pension is great value too) but I have only realised this just after also realising that I should retire and start spending.

Marine_life

I think there's an implication that you can't do both i.e. having money in the bank or spending it is not a binary decision. It all comes down to prioritzation and what is important to you.


I give you a small example. A few years ago I bought an iPod 5 - is it materially better that the iPod 3 that I had? No. did it add anything to my life? Not really. Its a simple example but consumption is subject to the pareto effect - when you have no money then a small additional amount of consumption adds significantly to your pleasure. When you have lots already then a small amount of additional consumption will make no difference.

chucknorris

Marine_life wrote: »

I think there's an implication that you can't do both i.e. having money in the bank or spending it is not a binary decision. It all comes down to prioritzation and what is important to you.


I give you a small example. A few years ago I bought an iPod 5 - is it materially better that the iPod 3 that I had? No. did it add anything to my life? Not really. Its a simple example but consumption is subject to the pareto effect - when you have no money then a small additional amount of consumption adds significantly to your pleasure. When you have lots already then a small amount of additional consumption will make no difference.

I suppose it depends exactly how you define it (in the context of the OP's post), personally I define it as spending capital at a rate higher rate than current savings/investments are adding to it. For example, we could be spending quite a bit but still increasing our real term wealth, but I wouldn't in this context class that as 'spending'.

enthusiasticsaver

I think we would always save to a certain extent but the amount we save would depend on how close we were to our comfortable retirement buffer.


Some years we have an expensive holiday and do no home improvements and don't change cars and other years we will have cheaper holidays and do a big home improvement project or gift money to our two daughters. Surely it is all a balance.


I would hate to get to retirement without a safety net (we have decided on 5 years of our net income in cash and stocks and shares) in addition to our house and pensions. Equally I would hate to scrimp and scrape and have 100s of thousands in the bank on our deathbed. I consider money gives you choices and it is up to all of us to make the best of those choices. If living in a comfortable care home is your choice then fine but equally if you choose to do round the world trips and splurge on your family that is also fine. I plan to do a bit of both.

Paul_1977

When I had no money I valued everything I had because I knew if I broke it I would not be able to replace it. Now with money in the bank and credit cards I do not value things as much.

There is something good about not having any money, but I would not want to go back to that.