Sacrificing today for a bit more tomorrow ......

RickyB2000

kidmugsy wrote: »

Fancy cars are a snare and a delusion: as the saying goes, borrowing money you don't have, to buy things you can't afford, to impress people you don't like.

I know, and I hope to have the last laugh. However, I have this funny feeling that just as I retire the system will change in such a way that I will be stung for saving and they will get off Having had a real ball!

uk1

There is a common fear expressed that weaves it's way through many posts. The perfectly rational fear that sacrificing today for an anticipated benefit in the future and then find yourself being scuppered by that cheating government. And very often that is the reason given for not sacrificing now. It is a perfectly reasonable concern because of what we have all experienced. I have spent a whole pile of cash on extra NI years for both my wife and I when they wrote inviting me to only to, to then have the qualification years reduced. Cash wasted and they won't give it back to you. Talk about "misselling" pensions. :mad:

Human nature being what it is, sometimes we all look for excuses not to do something to justify what we don't really want to do, and that's the danger isn't it? What I feared most was not having enough cash for credit on the leccy meter!

Jeff

OldBeanz

I have no regrets over the new cars that I have bought over the years. The best was an MB which I spent 4 years saving hard for then 10 years enjoying. Some of the matter Top Gear found in cars they bought gives good reason why you would not want to buy second hand. If someone has bought something and enjoys it then that is up to them.
Now if you want to talk of money wasted then tobacco: bad for your hair, eyes, skin, teeth, mouth, lungs, heart, circulation etc; gambling: unless you are a bookie; alcohol is a poison and clothes made in the same factory with some selling for ten times as much because they have a Nike tick or other label would be far more pertinent to tut tut about. Why bother how others spend their money? What some consider a waste of money, brings joy to others. We are all different, thankfully, and the world is a better place because of it.

OldBeanz

uk1 wrote: »

...Cash wasted and they won't give it back to you. Talk about "misselling" pensions. :mad:...

I would be having strong words with my Financial Advisor if that had happened.

Enterprise_1701C

Look at it from another side.

My mother saved all her life for retirement. She died at age 47 and a very unpleasant stepmother took full advantage of her savings. Let's put it this way, her kids are absolutely fine financially.

As a result of this we take wonderful holidays, we do not overspend on anything else but our holidays are OUR time that we truly enjoy, you never know what is around the corner.

uk1

OldBeanz,

It was as I said NI "voluntary" over-payment.

Yes mine was MB as well and as you rightly say you don't buy one of these second hand. My one was far too sophisticated electronically and often goes wrong. The great thing is Mobilife which guarantees you a hire car of equal or better status. So we regularly get to use a brand new S class. As you know Mobilife is free with all MB's and will last until the car is 30 if I remember correctly. The last one they let us keep for our holiday even thought my car only needed an hour in the dealership. It cost them £7k on car hire fees! I'd prefer a reliable car though.

Super_Whiskey

uk1 wrote: »

Super Whiskey,

Congrats on thinking this through in the way you have.

It seems to me from the little you have said, that what you may contrive is a situation although you are by no means a wealthy saver, where you plan to acquire that lovely increasing asset that you can live in whilst hopefully it increases in value to the point where you are perhaps mortgage free when you retire perhaps even by downsizing. People often forget that in decent property markets it is often possible to double your stake ie deposit each year. This leaves you in the great situation of being mortgage free with whatever you have in SP and other pensions when you retire.

Your comment about living frugally is an interesting one because it is all about self disciplain. The mistake that many (including myself at some points in my career) always make is that expenditure always expands to fit an increasing income if you allow it. You never feel like your doing better, you just spend and often waste more. When I was employed I eventually tried to put much of any salary increase straight into increased pensions so I never actually tasted it and got use to it. Sounds like something you'd do.


Jeff

Perhaps I am lucky/unlucky (depending on your point of view) that the things I like to eat on a regular basis can all be made in bulk and very cheaply; spag bol, curries etc with maybe one meal a week with my non-live in partner where we make something more extravagant or go out to dinner. I probably could afford to be a bit more lavish with my meals but I like it and it means I can put the money towards other, more useful things. If I was to get a pay rise then obviously my spending will rise a bit because it's nice to have nice things but I'm not the kind of person who will spend my money just because it's there.

In terms of buying a house, while that first hurdle of getting on the ladder is by far and away the hardest, I think that given enough time, you will make money on it.

d70cw6

split your salary up into pots
20% into pensions
20% into savings
20% into mortgage
20% into bills
20% into luxuries
20% into dreams

bugslet

We aren't terribly long-lived in our family so I try to achieve some balance.

I overpay the mortgage a bit, I put some savings away, but not a fortune and I put some in a pension. I started at about age 25, with the princely some of £25.00 a month - I was very poor and it was the principle that counted.

I have had a fancy performance car and it was a blast, literally did this every time I got in it. I drive a decent second hand van now because I got it out of my system. Last time I had a foreign holiday was 1991, just before I started working for myself - I don't really have the travel bug.

I like to think I fall somewhat boringly into the middle of the dedicated pension savers and fritterers. You have to do what suits you best.

tiger_eyes

d70cw6 wrote: »

split your salary up into pots
20% into pensions
20% into savings
20% into mortgage
20% into bills
20% into luxuries
20% into dreams

And now that you've spent 120% of your salary, how do you fund the debt repayments?