A really daft question about my own Savings.

PaceThePixie

Afternoon lovely people :wave:

I think I know the answer to my own savings question but would like other peoples opinions.

I have a personal savings account of £4k. It was £5k last year but I did use some of the money to buy tyres for the car (not my car hubby's but I do get equal use of it so a family vehicle). That cost me £300+. I have also used some to buy what I call essentials such as glasses (spectacles) which given the prescription needed was £400+.

I am topping up the savings account as and where I can (I work part time due to current health issues, getting better all the time though) but I keep asking myself what is it for. Is it just for these such expenses? I have never had savings before and, I have, in the past been incredibly bad with my own finances. I am now debt free, hubby not so but that's being sorted thanks to Step Change and my constant nagging :rotfl: I don't want to be in a position where I am ever in debt again or without savings but I find spending any money from my savings incredibly hard to do and justify in my own head! Am I just being hard on myself?

I know this sounds like a REALLY stupid question, but all opinions and advice would be nice to hear.

Thank you.
Pace

rama0927

People save for different reasons, your savings and what it's used for sounds quite normal to me .

It's good to save so there is a safety net, for example if you or your husband become employed, or the car breaks, or the roof falls in on the house. Things like that. When the kids grow up, they may appreciate help with things too - rent, car, wedding and such.

Savings are also useful for a small secondary income, if you put the savings in an account which beats inflation. Obviously the amount will be very small, but every little helps and it will grow year on year.

If all goes well and you don't need to dip in, savings are useful for holidays or retirement, as the state pension isn't worth much at all. However I am no expert on savings for that long term.

I hope this helps and that my reply isn't too obvious.

MarkFromCornwall

PaceThePixie wrote: »

but I keep asking myself what is it for

As JackTheWelshMan says, people save for different reasons. I think one of the great advantages of savings is that they give you choices when you are older. Perhaps you enjoy working now but when you are in your fifties or sixties, and perhaps in poor health or weary of working, savings will give you more choices about changing to part-time work or retiring early.

Archi_Bald

What are your pension arrangements? What will you live off when you don't want to / can't work any longer?

PaceThePixie

Thanks for all the replies. Much appreciated. Pension will be a small affair from my point of view. It is topped up by a very small amount every month. I will have a very small pension from the MoD too at 67. Trust me that will be very small.

I don't have any children so I don't have to worry about any other people coming to me for a 'loan'.

You have answered what I needed to know. Use it if absolutely necessary and continue to top us as and where I can. I know it sounded like an utterly daft question but sometimes other peoples voices help you, well me, to understand much more. I will not be daft and blow the very small savings I do currently have.

Thank you

Archi_Bald

PaceThePixie wrote: »

Pension will be a small affair

Make it bigger if you have spare money kicking about.