What are long term savings for?

Green_garnet

Although I don't think I have anything constructive to suggest, I am interested in this subject.  I was thinking about it quite a lot and I'll be pleased to hear more experiences and opinions.

I have a long history of struggling with mental health and at my lowest ebb I really felt quite seriously suicidal.  Long story but, eventually, I managed to sell my 'problem' flat and moved into really good sheltered housing.  Things are quite a bit better now although, at times, I still struggle to keep afloat - health wise.

Although I don't have a lot of money I am grateful not to need any means tested benefits.  The money from my flat is dwindling slowly because of expensive rent and Council Tax - as well as the increased cost of living.

Even so (and this is definitely not in the league of deprivation of assets) I struggle to allow myself unjustifiable treats.

My head tells me that life is for living, and I should really have a modest holiday, but, when I think of what it will cost, and wouldn't find it  easy to replace, I put off making a decision.  I am not miserly and, when possible, I like to be generous to others.

I live modestly on my State Pension and a Disability Benefit.  I buy clothes at the Charity Shop and try to buy yellow sticker food when possible.

At the back of my mind there's always the anxiety that I may be required to reapply for my Disability Benefit (the full amount does not cover my rent and Council Tax), my Pension is quite small and, like so many others, the Disability Benefit may be reduced or even discontinued at some point.

My hair needs to be cut just now and I keep putting it off - to make 'it' last a bit longer - not a pun!

Out of interest I am interested in any comments.

TheWoodler

My parents instilled in me the attitude never to get into any debt - they’d both suffered from fathers who were ‘useless’ with money.

They saved hard and enjoyed spending what they had sometimes, which was often very little, but all the more precious to them when they *could* spend a little. My mother always said, ‘Save some, spend some’ and I’ve always felt that a healthy attitude. They continued this attitude even as they became very frail - a little jolly to a local café became a great treat. 

She also gave me similar wise advice such as buying classic clothes that would last several seasons, but updating with cheap and fashionable accessories, and buying the best you can afford (‘buy cheap, buy twice’) so again there was that saving for material things and an investment in them. Valuing what you have and taking pleasure in it, whether it’s a pretty £10 bunch of roses because you feel like it and it’ll give you a smile every morning, or nice china that’s a pleasure to use. 

That’s one thing where I’m different from my mother. Like many of her generation, she saved a lot of things ‘for best’ but never used them. It was a waste of money and of gifts kept in cupboards - and a lot to get rid of in clearing the house!

It’s crucial to save, but not to let saving for its own sake take over. For us, as early retirement looms, savings are working hard at the moment in order to help sustain a more relaxed lifestyle as we will have earned it. I can see that continuing even as we spend it. 

I appreciate the answer to this will be different in individual circumstances. We’re certainly not taking it with us and have no children (or even nieces and nephews) so it is all for our retirement, and we might as well benefit in our lifetimes. Care home fees may come into the equation ultimately, we have an eye to that, but if we can’t enjoy ourselves (courses, travel etc.) while we’re fit and able to do so, what’s the point of saving? 

Ultimately I suppose this is a lifelong ‘save and spend’ strategy. That has included at times paying for my late parents’ expenses when needed, and I was glad to do it and help out. A charity will benefit when we go if there’s anything left - I’m not saving ‘for best’. 

theoretica

My long term savings are so I have the freedom of options - even if I don't take them up.  I don't feel trapped in my job - I know I could go part time or walk out without alternative employment lined up.  If there is an expensive holiday or something that catches my eye I may well choose not to go, but it is a choice, not because I couldn't.  I am very sure I don't want to work full time until I am 73 or whatever the retirement age may be by the time I catch up with it and I expect my desired spending to increase when I do have more time.

Prism

We naturally spend less than we earn which basically means we don't save for anything - it just happens.

Reddleman79

I used a considerable amount of my savings to bridge the large gap between retiring early and drawing pensions. I used a spreadsheet to plan it all, and it worked out well.

sevenhills

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 have been saving heavily into my pension hence I expect to have a  comfortable retirement.

When you do get close to your retirement age, you need to learn to spend money, it does not come naturally.

Although it can be easier to spend if you have a million in the bank.

I too enjoy being frugal, some people never use that word. We need to be healthy in old age in order to send that money, look after your health.

Maybe Pluto TV is an option, before the upgrade to Sky?

Stubod

...I think most of our long term savings will now be used to pay for eletricity during the Winter..   

caeler

This is an interesting question. I’m a saver too having paid off my mortgage 2 years ago. I’m not interested in the latest gadgets and I don’t have expensive tastes or hobbies.  I’m planning a holiday later this year but have the cash ready. I’m saving for the long long term - for when I don’t work. I don’t know if I “enjoy” life, I’m happy but I spend most of my time working and I don’t spend much money day to day. I will ponder this more! But the security of savings does makes me happy so maybe that’s enough. Such a fortunate position. 

Bigwheels1111

I aim to have fifteen to twenty thousand to spend a year above my state pension.
For 20 years, with 100k on top for large purchases. Car or motor home.


Stay on target.

Newly_retired

I have always been a saver, once I had any spare money. My parents had little, so I grew up being careful with money, frugal, really. I started to save seriously once the children had left home. I could work full time, take promotion and am now retired with a reasonable final salary pension. I have a decent amount of savings, certainly enough to cope with unexpected household bills, or to plan a holiday or to change the car. Eventually there should be enough to pay for care costs, if required, for a year or two maybe, which is why I wouldn't dream of spending it all, even if I were inclined to do so. I am still a saver, and use this site to make my savings work for me.
My husband, who died recently, was a spender. He had not a great deal of savings. He had expensive hobbies, was a collector, both of specific things and of gadgets and tools. So now I am faced with trying to dispose of these. Yes, some have gone to charity, that's the easy bit. Most are too good to just give away, but it is hard work to ensure that the expensive items realise their value. I wish he hadn't spent so much on things that don't matter.