How much should you be saving?

Skag

I live in London, zone 2, I am 34, have a good job now (let's say income of around 120k pa) and can afford to save quite a good chunk of my money, around 25%, after all expenses and leisure. Hopefully will move forward to acquiring a house in the next years.

However, I have been thinking that for someone who doesn't earn that much, let's say 50k (which is a good average for London), maybe married, and his/her spouse earns another 40k, if he also wants to travel, have some fun AND save, that doesn't leave much at the side to be saved! (again, in London).

So I have been thinking lately: to save, or to spend now that we're not old and actually can do stuff, go around and have some fun?

enjoyyourshoes

Work out what you want to get out of life?
Put this in financial term.
Save to achieve this.

Repeat.

Bravepants

Skag read:


https://www.mrmoneymustache.com/ and


https://theescapeartist.me/


Escape the rat race and do what you want while you have the income to save and you are still young!

Skag

This is a more philosophical question, I understand, many thanks for the links and the "routine" by enjoyyourshoes, that's so true, it totally depends.
However since we can't predict the future, roughly 2 things can happen:
1. Yolo, enjoy life, and things will turn out for the best at the end
2. Yolo, enjoy life, and end up penniless.
Of course, if No1 holds true, then that's fine, however there are stuff you can do to prevent No2 happening, i.e. keep up with the rat race, and save.
That roughly.

enjoyyourshoes

Enjoy life- have more experiences not things.

Is it you or is it we ?

If we, both have to agree whats important in life.

Bravepants

I think both 1 and 2, with your qualification about preventing number 2 happening, are the same thing.


You can ensure things turn out for the best by preventing number 2 from happening.


Anyway, if you can achieve your desired level of fun and happiness on half your take home pay then you can save the other half and retire in half the time (or less with good investment returns) than you normally would have while having the same lifestyle as when you were working.


I like to quote from The Terminator in such situations..."No fate but what we make!" :-)

Skag

It's we. The spouse is more like you described "go around the world and experience", I'm more "whoa, we need to save some hun". That's not to say that we don't do stuff: at least 1 long haul and 3-4 short haul trips each year! Which, for me is "enough" and the rest should go to invest/save. Is it though?

Skag

Btw I come from a very well off family, so I need (and want) to keep the ball going, if not replicate and multiply the already acquired.

Bravepants

Yes but what do YOU want out of life. Never mind the family name.


It depends what you want to acquire? Pointless stuff as equally pointless status symbols? Or a good (or great) nest egg for you and your loved ones' future, with the opportunity to spend on experiences and self development/improvement again for yourselves and your loved ones? The latter is more noble I think.


Don't spend your cash on status symbols, they are shallow and you will be forever keeping up with the Jones's as Mr Jones gets something better than you, and you keep up, then he goes one better etc. What a load of faff!


If you had the chance to retire in 10 years at 44 and do what you want with your life, would you do it? Or would you want to work until you are 67 and beyond to bring in more and more cash that you don't actually need, even if it IS for upholding your family's status?


Like enjoyyourshoes said, work out what you want and do that.


Investing as much as you can when you are young will reap rewards for a peaceful life in the future, but remember there are no pockets in a shroud.

Mr_Costcutter

The path of life is uncertain. At this moment in time you have your health - take advantage of that fact and
make sure you live life to the full. However, ensure that you squirrel money away to ensure that you are protected when life isn't so easy - who knows what lays ahead.

NineDeuce

Bit of both. Dont underestimate the worth of saving or paying off mortgages. The government could screw things at the drop of a hat if it is worth votes from some Daily Mail readers...