Why do people save?

Thrugelmir

Nationwide8 wrote: »

It occurs to me reading this thread if there comes a point in life where savers become try-to-be spenders ?

Takes a matter of seconds to spend money. Money doesn't buy happiness. Far more important things in life. In my will I've decided to leave bequests to a number of worthy causes. Far more satisfying. Meanwhile I'll continue to enjoy a comfortable standard of living. Knowing that I've never ever going to have to worry about money

Cakeguts

I don't save. I am just not very good at spending money. I never have been. We are comfortable. We nearly always have too much in the current account because it mounts up. I don't like shopping. I spend money on the two main charities that I support. Usually by donating things they need. I have to buy the things to donate but I don't need to do that everyday.

I think it depends on whether you like shopping or not. I have never been very interested.

RG2015

Thank you to everyone for your thoughts and advice on this issue. In fact, the conversation has covered several diverse issues.

I am sure that I will come back and re-read these words of wisdom more than once.

EachPenny

davieg11 wrote: »

There may be an increasing number of people living to 100+ but I doubt it would be a shame running out of money at 90. Not many people at that age doing much with their life.

I think it depends on the individual. The 90+ people of the future will have had far better healthcare at the start of their lives and experienced a lot more, so are more likely to have the health and the interests to want to do more with their lives in their 90's.

I know someone who is months away from their 100th birthday. Who, in their 99th year, has been on three foreign holidays. Flying away twice, plus travelling by car (not driving though ) to the South of France. All that in a year which started with them having major heart surgery.

So to me it is all in the mind.... just make sure you have enough cash to do a parachute jump or whatever else you fancy doing to celebrate your 100th

choccielover

I save because we are in the extremely fortunate position to earn more than we need. We aren't exuberant spenders, in fact we've been careful not to acquire the expensive habits my peers have. We live well and the savings give us security, options for our future and the ability to splurge when/if we want to.

Our only child will be secure and well provided for, should she need it. Though we don't come from and therefore aren't the types who will be buying her first car or home. We value the satisfaction that came from knowing the things we have were worked hard for, not given and want her to have the same.

JustAnotherSaver

On the topic of care ... having had my nan in the care system this year and suffering its frankly disgusting level of 'care' to the point it's actually hazardous to health & life

I hope i never have to go in to care. To be honest i'd rather die than have someone 'care' for me the way she's been 'cared' for.

I'm sure there are good carers out there but like many things - cuts & targets result in the care side of things suffering. A friend of ours is in the hospital system & has said the same. So that's someone on the inside in the hospital system & our nan on the receiving end in the care system and it's negative results on both sides.

Mr_Costcutter

I'm tapping-on a bit and have recently acted as an Executor for a number of friends who have sadly died.
One in particular had endured a very hard childhood ( from a very poor mining community) and found it impossible to spend. The reason he gave me was that he felt guilty in doing so. I spent many a day encouraging him to spend a little eg a nice holiday etc - he just couldn't do it. Consequently the Estate was extremely large (nearly 2 million). This chap isn't the only one of my friends with this problem - for some 'saving' became addictive. Obviously achieving the balance between saving/investing and spending is essential

bigadaj

JustAnotherSaver wrote: »

On the topic of care ... having had my nan in the care system this year and suffering its frankly disgusting level of 'care' to the point it's actually hazardous to health & life

I hope i never have to go in to care. To be honest i'd rather die than have someone 'care' for me the way she's been 'cared' for.

I'm sure there are good carers out there but like many things - cuts & targets result in the care side of things suffering. A friend of ours is in the hospital system & has said the same. So that's someone on the inside in the hospital system & our nan on the receiving end in the care system and it's negative results on both sides.

Is this care publicly or privately funded?

The simple answer to those criticising care is often that the care could be given by relatives instead, I wouldn't want to and wouldn't expect many to want to either but it's an option and one that may be logical if the relatives want to retain the estate.

Eco_Miser

Cakeguts wrote: »

I don't save. I am just not very good at spending money. I never have been. We are comfortable. We nearly always have too much in the current account because it mounts up.

That makes you a saver. Now all you have to do is divert that excess money to where it will earn most, so you will have plenty to live on when you stop earning.

ianthy

I was taught to save by my Mum – with a Post Office account and very small sums each week from my paper round. Then when I started work and my co had a regular saver scheme taking a sum out of your weekly pay. I signed up from day 1 and was amazed how £5.00 a week could amount to so much money over the space of a few years. Whenever I had a pay increase or changed job I just increased the regular saver amount or opened another account and made a monthly transfer. My pay has varied from £40k per annum to £250k per annum self employed but my spending habits have never really changed above when I earned £40k a year. This simple process allowed me to save a deposit for my first home without too much pain. Fast forward 25 years and I still use a similar system with my OH, we set our annual budget – monthly spends, holidays, repairs on the house and we generally stick to it - with the odd splurge! I also notice that my OH is more relaxed about changes at work – if the new roles/jobs are not right for him, then he is happy to leave with no immediate job. He has more than enough savings and other income to last him until he can draw his pension. Having savings provides a safety net, a degree of comfort and confidence for unplanned and planned events.

I do think the skill/art/discipline of saving is something that needs to be learned at a young age – my sister who is 1 year older than me. Never bothered with the Post Office savings when we were children and was never interested in saving – Fast foward to age 56 year and she still struggles to manage her money – irrelevant how much she has earned. OH and I are now in our late 50’s and need to stop saving as much and start spending it... which is a different problem.