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Tykva

My fav read on this is frugalwoods.com blog, staying frugal is the best balance

diamonds

moneyfoolish wrote: »

Our system is easy. I save and don't spend and my wife spends and doesn't save!

The correct term is financial abuse!

diamonds

Tykva wrote: »

My fav read on this is frugalwoods.com blog, staying frugal is the best balance

I'm not frugal, i'm so much better than that

diamonds

lawriejones1 wrote: »

There is no rule of thumb that works, nor an easy way to break habits (either spending or saving), you just have to do the best you can. My grandmother died a millionaire but never really enjoyed her money. I save what I can (10 - 30% in investments, 20% pension) but I make sure enjoy myself too - otherwise there really is no point in working so hard.

The key to enjoying spending is to maximise completely the value you get in every pound and to waste nothing.

This is so true, but for some of us to buy to have cheaper housing costs its belts tight knowing springtime comes with a mortgage and a free up of some luxury cash


The right property and mortgage makes you monthly richer not poorer in many ways

SpeedSouth

I have an amount I believe I can save in pension/investments (based on fixed expenditure) then spend from there.

I thought I was doing well saving (pensions/investments)37% of my net salary but seeing some peoples figures makes me wonder where I waste my money.

I know I don't waste much at all but still..

I do buy the odd big ticket item, but really the only thing I consider a luxury I spend regularly (4 times a year) on is holidays and even these rarely cost more than £600-£750 for a family of 5.. This will increase as the kids get older though I realise

Eco_Miser

adam81 wrote: »

I thought I was doing well saving (pensions/investments)37% of my net salary but seeing some peoples figures makes me wonder where I waste my money.

Comparing percentages without knowing the actual amount can be misleading:
A single person on £10k could save 50% trying hard, on £20k net they could save 75% with the same expenditure.

adam81 wrote: »

I do buy the odd big ticket item, but really the only thing I consider a luxury I spend regularly (4 times a year) on is holidays and even these rarely cost more than £600-£750 for a family of 5.. This will increase as the kids get older though I realise

Well, there's £2,400 to £3000 'wasted'. The really frugal would take a holiday hop-picking or similar and get paid for it

savings_my_hobby

i_was_taught_2b_cautious wrote: »

thanks for all your replies.

I am trying to square that circle so to speak.......

I know all the items I mentioned above are luxury items, but the reason I asked the question was because I don't feel like I have anything that I would call valuable, and what I mean by that is, if in the hour of need I need to raise some money I could pawn something valuable to raise some money.

I have been watching that program called Posh Pawn and on there it seems as if ordinary people have these "amazing" valuable items which they never knew they had or find after having a clear out.

I would like to have something like that, hence my question about finding the balance between saving and spending, but spending for a gain.

It is one thing getting a decent valuation for an Item it is quite another finding someone to pay this valuation for said item when you actually need the money.

There is no substitute for having a bank account full of cash for an emergency, If not you may be forced to sell at a lower price. I would sell my blood and/or sperm before I would use a pawn shop, personally.

I think the trick is buying what you need rather than what you want but included in that list should be "buying" a safety net of a few grand. This should be one of your top priorities.

SpeedSouth

Eco_Miser wrote: »

Well, there's £2,400 to £3000 'wasted'. The really frugal would take a holiday hop-picking or similar and get paid for it

Arguably.. But if you can get 3 boys under 4 to pick hops you a better person than I..

I'm careful but I maintain I have a balance, even if people call me tight, but holidays regardless are the reason I go to work after the warmth and roof.

darkidoe

Another way to look at savings and spending is to calculate your savings rate. Calculate monthly savings after taking off any monthly outgoings from the total monthly income and divide it by total monthly income. The higher you can get the number, the better it is. It probably correlates with more happiness and less debt and financial worries. At its extreme when you can bump the number up to 60%, 70% or even 80%, you will be looking at possible early financial independence, itself bringing greater freedom and relief. IMO, that is the ultimate reward and experience.

jamesd

i_was_taught_2b_cautious wrote: »

Do you promise yourself if you reach a certain savings target you will reward yourself, or do you just spend as and when you want?

I spend as and when I want.

This has resulted in me saving more than 60% of my (net pay plus gross pension contributions) over the last 11 years. At the moment my savings and investments are worth about 90% of total net pay plus gross pension contributions for the whole period. The financial security of knowing that I won't have to rely on benefit levels of income and will be able to retire well before state pension age is part of my reward.