Other people's facepalm financial management
Discussion
Saving for retirement is a deleicate balancing act
My partners great Nan, who is now 96, and worked as a receptionist her whole life, never spent more than she needed too, no days out, no holidays, no meals out etc, and now st 96 is in a care Home, freely saying she’s wasted her life, and it’s the same care Home she’s paying for as she would have got for free from the council.
By all means save as much as you can in your company pension. Save a little more in an isa or investments but don’t think for a second that forgoing everything when you’re young and healthy will pay off when you’re old and not healthy enough to do the things you wanted
My partners great Nan, who is now 96, and worked as a receptionist her whole life, never spent more than she needed too, no days out, no holidays, no meals out etc, and now st 96 is in a care Home, freely saying she’s wasted her life, and it’s the same care Home she’s paying for as she would have got for free from the council.
By all means save as much as you can in your company pension. Save a little more in an isa or investments but don’t think for a second that forgoing everything when you’re young and healthy will pay off when you’re old and not healthy enough to do the things you wanted
Nickbrapp said:
Saving for retirement is a deleicate balancing act
My partners great Nan, who is now 96, and worked as a receptionist her whole life, never spent more than she needed too, no days out, no holidays, no meals out etc, and now st 96 is in a care Home, freely saying she’s wasted her life, and it’s the same care Home she’s paying for as she would have got for free from the council.
By all means save as much as you can in your company pension. Save a little more in an isa or investments but don’t think for a second that forgoing everything when you’re young and healthy will pay off when you’re old and not healthy enough to do the things you wanted
That’s all well and good, but it’s all about balance. The lady in your anecdote is a fairly extreme example of one end of the spectrum. My partners great Nan, who is now 96, and worked as a receptionist her whole life, never spent more than she needed too, no days out, no holidays, no meals out etc, and now st 96 is in a care Home, freely saying she’s wasted her life, and it’s the same care Home she’s paying for as she would have got for free from the council.
By all means save as much as you can in your company pension. Save a little more in an isa or investments but don’t think for a second that forgoing everything when you’re young and healthy will pay off when you’re old and not healthy enough to do the things you wanted
If I planned on working to SPA (realistically 70 when I get there), I’d be inclined to blow it all now, save for a few years of holidays. However, those of us that want to retire in our early fifties - when we can only assume we will be in good health - to enjoy a couple of active decades, will need to squirrel away a fair bit, as we are 20-odd years away from SPA, whether that’s means tested or not.
For me, my company contribute 16%, and I add 5%. That’s a generous deal, I appreciate. I try to save a further 25% into investments. The goal is retirement at 52 or so - essentially when I’ve got 30 years of retirement funds built up.
That allows me to live a comfortable lifestyle now. We don’t feel we’re missing out, but just making sensible decisions.
My ex's parents made me facepalm hard. They (mainly her mum) would plead poverty, yet she didn't work. They have takeaways or eat out around 3 times a week, had sky, then they bought a dog.
They then sold their house which they'd been in for 6 years worth circa 180k to move to another 3 bed semi worth 160k....to release 20k equity. It's beyond me why they did that as it would have cost them around 10k to move?!...all on interest only mortgages.
Dodged a bullet with that one.
They then sold their house which they'd been in for 6 years worth circa 180k to move to another 3 bed semi worth 160k....to release 20k equity. It's beyond me why they did that as it would have cost them around 10k to move?!...all on interest only mortgages.
Dodged a bullet with that one.
I learnt long ago to let people hang themselves when it comes to finances. As long as your money isn't tied up then leave them to it.
I can think of some prime examples though. A mate's mate inherited 300 grand several years ago. She's left it in a current account ever since earning no interest whatsoever. The only bit that has been spent was a holiday caravan that'll have to be replaced in a few years and costs 4 grand a year in fees and ground rent.
The weirdest was my grandfather who was a big four tax expert back in the day. He literally made zero provision for inheritance tax. None. Not his problem I suppose.
I can think of some prime examples though. A mate's mate inherited 300 grand several years ago. She's left it in a current account ever since earning no interest whatsoever. The only bit that has been spent was a holiday caravan that'll have to be replaced in a few years and costs 4 grand a year in fees and ground rent.
The weirdest was my grandfather who was a big four tax expert back in the day. He literally made zero provision for inheritance tax. None. Not his problem I suppose.
orangesrule said:
They then sold their house which they'd been in for 6 years worth circa 180k to move to another 3 bed semi worth 160k....to release 20k equity. It's beyond me why they did that as it would have cost them around 10k to move?!...all on interest only mortgages.
What the f
k. All that effort for minimal extra cash.I have friends who have average jobs probably earning £55k a year between them, one child and a house when purchased 20 years ago was around £60k
They are up to their neck in debt in loans and credit cards, god knows why they spend so much money on crap and designer clothes.
These clothes then appear on eBay and the local Facebook page for sale at a fraction of the retai cost.
They are up to their neck in debt in loans and credit cards, god knows why they spend so much money on crap and designer clothes.
These clothes then appear on eBay and the local Facebook page for sale at a fraction of the retai cost.
bloomen said:
A mate's mate inherited 300 grand several years ago. She's left it in a current account ever since earning no interest whatsoever. The only bit that has been spent was a holiday caravan that'll have to be replaced in a few years and costs 4 grand a year in fees and ground rent.
To be fair to her, there are far worse things she could have done. Plenty of examples of muppets blowing inheritances in no time, with little left to show for it. But yes, a little financial advise would have seen her make better use of the money - even at low risk levels.rossub said:
To be fair to her, there are far worse things she could have done. Plenty of examples of muppets blowing inheritances in no time, with little left to show for it. But yes, a little financial advise would have seen her make better use of the money - even at low risk levels.
I know people who keep all their money in 0% interest current accounts. I don’t get it - even the most miserly savings account will pay what, 0.05% and that’s got to be better than nothing for no hassle or risk. I know it’s bugger all but literally five minutes on Google would find you something better than 0% that’s hassle-free and pretty much zero risk. The bank going bust (if you had it all in one bank) would be the only real risk I can think ofGassing Station | Finance | Top of Page | What's New | My Stuff