Can you save too much?

enthusiasticsaver

Pincher wrote: »

Amusingly, I find myself in the position that I need to hire somebody to housesit the house if I do go on holiday.

The burglars around here don't really care you are in the house. The house opposite saw movement in the shed, and called the police. I saw the police standing in the road, blue light flashing, around midnight. The burglars just scarpered. What helicopter, what chases? Nobody was ever caught.

Next door to that, they were sleeping upstairs, and they jimmied the front door, and took the big screen TV in the front living room. This was when big screen TV was worth something.

Next door to that, they levered open the double glazing window, and went in.

So, I need to save up, extra, not for the holiday, but the house sitter as well. I have some relatives who can fly in to housesit, but it takes a lot of arranging. They have a life, so they can't come just because I found a cheap deal in Egypt, like RIGHT NOW!

Sounds like you would be better off saving to move to a safer neighbourhood. That would terrify me beyond belief.

Gustav_Delius

You are quite right not to increase your consumption just for the sake of it. Society needs people like you who are happy to keep their money invested rather than spending it. If everyone started spending all their money on consumption rather than investing it, there would be no money for factories or businesses.

Jolly44

Saving money is an inherent part of a persons genetic make up. You are either a saver or a spender and which ever you are it is extremely hard to change your ways. Personally I have saved since I was child and have never ever been in a position of not being able to pay my bills or be short of cash in an emergency but even so I still would not overspend my monthly income and make sure that there is something 'put by' for whatever MIGHT crop up in the future. I just can't stop myself.. No one knows what life has in store for them so I want to have enough to cover every eventuality - what ever is left when I've gone, my family will be welcome to it
.
No one else in my family is the same as me, they get by somehow by just not worrying about it. Who is to say which is right or wrong?

To get back to the thread - When I do spend money I have to be sure that I am getting good value for money on whatever I buy - if I don;t think it is I am quite happy to walk away and do without it or keep looking until I find something that is.

Pincher

enthusiasticsaver wrote: »

Sounds like you would be better off saving to move to a safer neighbourhood. That would terrify me beyond belief.

It's not a rough neighbourhood. Houses are £900k+ around here.

Hampstead is more expensive, and "nicer", and they get a lot more break-ins. Hunter Davis got broken into, according to his column in the Money section, Sunday Times.

Medway_Gal

I have also been saving for some time, and plan to retire when I reach 50, presuming a I don't change my spending pattern (5% inflation and 0% interest to be pessimistic). Having said that I may continue to work for a bit to create a safety cushion.


I think there's no point having money left when you die, if you've been forcing yourself to get up every morning, and go to work for a horribly boss, when you could have relaxed a bit and spent your money.


I still have to justify big spends, I have a payg mobile, which is for emergency use, have just dropped sky tv as there's nothing on, and eat out less than once a month.


What I would do in your case is to divide your savings into monthly chunks to last until you are 100 (being optimistic), then if you reckon you could survive on that amount each month, retire. I would be wary though if your money is in property or shares or other investments 'that could go down as well as up', as it would be a shame to run out of money when you're too old to go back to work (hence my safety cushion above).

RD42

Is the question more "have I saved too much?" or "am I saving too much?"

I don't think you have saved too much, but I don't think that you need to actively save much more (Sounds like saving will happen naturally in any case, or at least an increase in savings)

My top tip - start thinking of £20 as being worth £10 in your mental calculations.

Ray_Singh-Blue

RD42 wrote: »

My top tip - start thinking of £20 as being worth £10 in your mental calculations.

With the devaluation of the pound and the unwinding of quantitative easing, I reckon we'll all need to start thinking like that soon!

Pincher

maishakellen wrote: »

I like to have savings but only for the sake of being able to do or buy the things we want.

A standard interview question is are you a spender or saver?

I think that sentence says you are a spender.

Nothing wrong with that.

If everybody was a saver, it will be a dull world.

lisa110rry

Pincher wrote: »

A standard interview question is are you a spender or saver?

Gosh, is that true? It's so long since I had a job interview! What is considered to be the "right" answer? I love saving. My investments went up by 10% between May and October, that was fun to plug into the spreadsheet.

I work because I want to and because I'm not yet in a position to retire. (My savings/investments are probably at about £125k excluding our home.)

But to be honest, if I did retire, I'd not have any time to myself as my husband is retired and pretty much immobile now, due to arthritis and a heart condition. I have a plan to open a pet-sitting and house-sitting business when I no longer go out to work. Not sure how that's going to work, but I already do a bit for a friend (no fees of course, though I have a G&T on occasions, he doesn't mind).

I do find it quite difficult to spend money at times, though at other times/on other things, I'm happy to spend. For example a couple of years ago, I spent £300 on undergarments at Boundary Mill, that was good as I'm still using some of them and they were all reduced in the sales.

I'm 60 and have lived in my home for almost 30 years now, there is very little I want. I do have a weakness for cashmere jackets though...

Taylorette

I think I'll be in a similar position when I reach the age of the OP.

I'm currently at the other end of the age spectrum and most of my income is saved. That pot just keeps growing as, like some others have said in this thread, there's nothing I actually want to spend it on.

Like others have also said I grudge buying anything for myself, whether it's £30 or £10000; I bought a car outright 2 years ago and even though I still had a good chunk of savings left I didn't feel comfortable parting with the money. On the other hand I will quite happily spend money on other people.

I'm clearly in the "insecure saver" camp.