Live now or save for then?

Adamc

I'm generally known for being a saver and cautious about the future. A lot of what I do is with one eye on the future. 

My wife on the other hand has opposing values she believes we should live for now, that our NHS pensions are all we need to save for retirement and that we should do what ever we want within our financial means. 

I do agree to an extent. We have several holidays this year which are preventing us from saving (we have rainy day funds). We are currently weighing up another trip to Japan which is likely to be very expensive. 

Do you live by a financial philosophy when it comes to such things? It's always difficult carrying out a cost benefit analysis. As we plan on having kids within the next few years the chance may disappear for a decade or two. 

I have a colleague who is ruthlessly frugal with money and owns multiple properties. He thinks we are frivolous. However he has a partner who he says he will never marry or have a family with as he doesn't want anyone to have a claim to his assets. His name is not Ebeneezer. Obviously I wouldn't want to be like that. 

Just musing about finding a happy medium between living for today and saving for tomorrow. 

newatc

When I joined a company aged 28, The Pension Manager came to see me and announced the good news that the normal 6 month wait to join the Company Pension scheme had been put aside for me. I said thank you but silently swore because it meant I'd have another payslip deduction. 25 years later, I took a generous DB early retirement and was grateful for that extra 6 months. The adage maybe that the future arrives quicker than you think.
That said I would encourage someone in your situation (my assuming you are quite young) to err on the side of travelling before the children arrive as I expect will be a natural break to such adventures and hopefully there will be plenty spare (after children cost) to prioritise savings.

squirrelpie

Adamc said:

she believes we should live for now, that our NHS pensions are all we need to save for retirement

You don't say what salaries you are on or what pensions you might get, so it's difficult to answer the question positively. But one thing to consider is that one or both of you might get a life-limiting illness or other condition that stops you accruing those pensions earlier than you might plan, so it's worth considering alternative scenarios as well. That said, that might also be an argument for enjoying yourself whilst you can. You pays your money and you takes your choice. And having made your bed, you lie in it. etc etc.

Albermarle

It is largely a personal issue and a constant dilemma often discussed on this forum and not just for younger people. New retirees with large assets, often are still stuck in the don't spend but save mode.

I'm generally known for being a saver and cautious about the future

We have several holidays this year which are preventing us from saving (we have rainy day funds). We are currently weighing up another trip to Japan which is likely to be very expensive. 

These two statements do not really match up. Nobody who was really financially cautious would have several holidays a year, with some being expensive. Someone really cautious would probably have a one week cycling/camping holiday each year and squirrel all excess money away for that famous rainy day.

Linton

My policy has always been to plan to maintain a constant standard of living throughout one's life. If the plans show one has excess money at death then that would justify taking steps now by increasing the average cost of a bottle of win, buying a better car, taking longer and more comfortable holidays etc etc. Otherwise, otherwise.

The reason is that one gets used to a particular standard of living after which imposed frugality lowers happiness and extra wealth does not increase it.

Albermarle

The reason is that one gets used to a particular standard of living after which imposed frugality lowers happiness and extra wealth does not increase it.

Very True !

dunstonh

My wife on the other hand has opposing values she believes we should live for now, that our NHS pensions are all we need to save for retirement and that we should do what ever we want within our financial means. 

Your wife's older self would probably look back and think that was a bad idea. 

We have several holidays this year which are preventing us from saving (we have rainy day funds).

Several holidays and not being able to save indicates living beyond means.  Maybe not to an extreme level but in a period of your life when you earn the most (working life) and not being able to save and have multiple annual holidays, you would be looking at a drop in living standards in retirement.

It is extremely difficult for people to lower their living standards due to lack of funds.

As we plan on having kids within the next few years the chance may disappear for a decade or two. 

Your current lifestyle will certainly end with kids.   You would be looking at 25-30 years after the last child is born before your living standards will increase again.   Kids are damned expensive.    Hopefully, the children will fulfil your life in other ways although it really depends on how much money you spend now and how much you have to cut back.

I have a colleague who is ruthlessly frugal with money and owns multiple properties. He thinks we are frivolous. 

He isn't wrong but you are not at extreme levels.   A happy medium is needed but based on extremely little information, it does appear that you are overweight on the spending side of the scale 

Just musing about finding a happy medium between living for today and saving for tomorrow. 

Time gets increasingly faster as you get older.  That is how it feels.       You will get to an age where you will regret not having put more money aside.

GhibliFan

dunstonh 

 
Time gets increasingly faster as you get older.  That is how it feels.       You will get to an age where you will regret not having put more money aside.

I agree with this mostly (time definitely goes faster), but you can scrimp and save all your life to build a nest egg for retirement and then get Dementia and have to spend the lot on care home fees.  In that case, the reverse is true and you'll wish you'd spent more money and had more fun!  Or rather, your partner will - you probably won't be aware of money by that point.

bostonerimus

Do a budget and plan what you will save and how much you will spend on things like holidays. From your email it sounds as if your spending is a bit out of control. Balance is the key, you need to enjoy life at all stages and but also have the finances to provide for your security in the future.

Adamc

bostonerimus said:

Do a budget and plan what you will save and how much you will spend on things like holidays. From your email it sounds as if your spending is a bit out of control. Balance is the key, you need to enjoy life at all stages and but also have the finances to provide for your security in the future.

Just to clarify. Spending isn't so much out of control but saving while paying off a holiday in full is impossible for 1-2 months. As we're going on several that means no saving for 6 months-ish.

 It's just now travel restrictions have been removed we've been making up for lost time with some wonderful holidays (trips to the States and resorts etc). This has meant we've paused saving.

Contemplating a Japan trip probably means pausing saving for the rest of the year ...  I have a 20k rainy day fund that I don't touch but need to look at investing some of it more productively (separate matter (SSI / LISA)). There's always going to be some expense or improvement to considered hence me thinking on this matter.  

All overheads such as mortgage + overpayment, car, etc covered and no debt other than student loan. 

I have overtime available so I may do some to fund the Japan trip and allow saving to continue.

Bravepants

GhibliFan said:

dunstonh 

 
Time gets increasingly faster as you get older.  That is how it feels.       You will get to an age where you will regret not having put more money aside.

I agree with this mostly (time definitely goes faster), but you can scrimp and save all your life to build a nest egg for retirement and then get Dementia and have to spend the lot on care home fees.  In that case, the reverse is true and you'll wish you'd spent more money and had more fun!  Or rather, your partner will - you probably won't be aware of money by that point.

And then again might live into your nineties. Life's a lottery. Take the middle road.