What are long term savings for?

jimexbox

Swipe said:

The problem is when you've saved so hard for most of your life some people find it very difficult to break that mindset and start spending it when they do become financially independent.

Absolutely, I find it easier to save than spend. There are no pockets in a shroud, so I'd like to die skint and the kids get the house. It's all about timing... 

Krakkkers

What is YS?

VNX

Krakkkers said:

What is YS?

My guess is yellow stickers 

i think it’s just engrained in us

housebuyer143

Mark_d said:

I've always been a 'saver'.  I'm rather frugal - careful with money and not someone who over-indulges.  I very rarely buy anything for myself and when I do, I don't go for luxuries - I'm not interested in spending for iPhones, Sky TV etc.

I like to think I've done well with my long-term savings/investments...but as I get older I ask when and how should I be looking to spend this money to enjoy it?

I do have a mortgage on my property but I don't want to repay it early because I believe the average rate of growth of my investments exceed the rate of interest on my mortgage.

From the age of 20, I have been saving heavily into my pension hence I expect to have a  comfortable retirement.

I see people around me treating themselves to the latest gadgets, travelling to all corners of the world for amazing holidays, buying brand new cars (possibly bought through loan).  I would love to do more travelling around the world whilst my health still allows it but I somehow feel reluctant to dig into savings.  I always have.

What are long term savings for and how do you enjoy it?  How much long term savings should be retained for an unexpected major event (other than something which would be covered under insurance)?

You need to change your mindset and it's hard. I was a massive reluctant spender for decades and would overthink every purchase and end up not buying it or doing it. 
I am now in the position where I can spend and not feel bad. I still don't buy myself much as I just don't feel I need it but I have a nice house, a comfy car and will spend my money in experiences. 
You only live once and tomorrow isn't guaranteed so it's just something you need to do and eventually you will feel less guilty about spending on it.

Shedman

I'll lend you my wife, she'll help you spend it....she certainly tries her best with ours despite me lol

Doctor_Who

I'm taking most of mine with me! Have you seen the size of the gas bill 'down there' 

powerspowers

I understand the mindset although I’ve not quite got the assets to have that problem yet!

Maybe start by thinking of something practical that would improve your life and giving yourself permission to spend on it? Or something you’ve always wanted to do? Or a cause you care about to donate to?

Another way of looking at things is to keep your savings at a similar level but stop actively saving. What could you do with that additional money or (assuming you are working) time? 

boingy

Swipe said:

The problem is when you've saved so hard for most of your life some people find it very difficult to break that mindset and start spending it when they do become financially independent.

This is the absolute truth. You are either a spender or a saver. It's hard to change.

brucefan_2

I struggle with the OP's question pretty much weekly and have no solution. I take a couple of short holidays a year but almost by default, live fairly frugally. And yes, even though I have more money than ever before in my life, I take advantage of the Yellow Sticker Items when I can.

With me, it's also very much a mindset issue. And one that is often a struggle to confront. 

When I left school, I had no savings. University was a struggle and I was often conscious of not being able to spend as others could.

Summer jobs kept me afloat and I then had a minimal amount of cash when I started work, post graduation. The best advice I was ever given was when a colleague persuaded me to buy a house when I got my first promotion, although I pretty much camped out in it for the first six months whilst I accumulated furniture etc., and had to be careful with every penny.

And now, having retired, I am, by many people's standards in a comfortable position, yet I am anxious of spending, possibly more so now than I have ever been. Crazy really.

I guess it's a combination of things:

Always putting off 'being extravagant' into the future, even though there is probably less future left now than is comfortable

Wanting to ensure that my children (now adults and all earning but with lengthy mortgages) have an inheritance which means that they won't have to work into their 70's or whatever the retirement age may be 

A concern that there may be care home costs in my future and a determination not to be a financial burden on my children as and when the time comes and also a wish to see out my time in reasonably comfortable surroundings with good care. This is not a given - my family has first-hand experience of bad care for now deceased relatives.

An extravagant meal out? A little voice pops up and tells me that could be petrol costs for one of my children to come and see me.

Thanks to the OP for raising the issue. It is genuinely comforting to know that others struggle with this question as well.

Sea_Shell

I hear you all !!! 😉.    

Most of my nuts are still buried 🤣.  (I am trying folks, honest 😇)

But the media would like to now make us out as the bad guys, because if we were to loosen our purse strings ...it's inflationary!!!