Spend or save?

[Mcbee]

I work with someone who has a lot of wealth...her and her hubby just bought a whacking great house lat month for cash (for a ridiculously low price) because they figure it was better to spend it on something rather than having it sitting in a bank because the rates are so low right now. Totally different planet to me mind! I spend what I earn every month and haven't a bean saved anywhere :-)

Sounds like she is spending .. but on an investment, so she's having her cake and eating it!

i think there is a difference between spending on consumable goods, and spending on assets, which could ultimately be a good investment. The expectation is that the economy will bounce back (although when is whats debatable) and when it does, all those investments bought cheaply should show a good return.

[jackie j]

I wish I had had the money years ago to buy houses they would be making a good profit now. I also wish we could have kept OH's house when he moved in with me, we had to sell after a couple of rental agreements turned sour, sold at a time when houses dropped in price so it was in a negative equity which could happen again now as house prices keep dropping. Ours is ok as I bought it in 1988 for just over £55 grand. Those were the days for buying but wages were about the same value as today in real terms.
Savings we have none.

[jackie j]

Our first house bought in 1977 was £9,250 for a brand new 2 bed terrace no central heating just a small gas fire, with garage underneath and small garden. Wages were £20 a week for me and £40 a week for OH both full time, mortgage was £80 a month cant remeber what any other bills were, sold for £19,500 just over two years later, bought a brand new 3 bed semi gas central heating and open fire, for £21,500 with small garden and external garage 1980. Sold for £55,495 in 1988 the first sale fell through, after a couple of months and we put it back on the market OH accepted an extra £500 when the house next door the same as ours went on the market for £22,000 MORE so in less than three months thats how much prices jumped and yes interest rates were at 15 %.

[HeyWayne]

With no mortgage, Snowdrop and I have more disposable income now BUT we will have nowhere to live come 18 December 2015....
...let me know if any of you want two house-trained lodgers

How are you guys with baby-sitting?

[Matt.]

Saving but considering where. I have a huge mortgage so I have to make sure I can cover the payments in case I lost my job. I'm targetting 12 months plus a kitty to cover the cost of moving should things get really bad. I think this is wiser than paying a chunk off the mortage but then having nothing to fall back on. But with interest rates so low even ISAs no longer look worth it. I'm very tempted to withdraw some of them and play the stockmarket instead. At least my fixed mortage deal is due to end this month and then I drop to the lower SVR. After that the bank cuts really start to pay for me.

[SarzWix]

Well, I've just checked my National Lottery account, and found I won £5.40 on the Euromillions on Friday, so I'm going to spend, spend, spend!! Quality Street anyone...?

[di]

I'd rather a toblerone!!

[bobleponge]

The very nature of my job means I am in a perpetual boom/bust cycle.
When I work in these ship holes in far flung places I am paid pretty well, but the contracts can and do stop at a days notice.
I have to save, in order to ensure that the next time the contract stops (and it will) I have enough cash in my account to pay my mortgage for at least 3 months. Its stressful enough without having to actually go abroad and do the job as well.
On the plus side, er er er ummmmm oh, there is no plus side. (Apart from crocodiles I spose)

[bobleponge]

my very first ever grown-up mortgage was for £24K (!) and this got me a three-bed detached house in an acre of land - oh happy times!

And this was at a time when interest rates were 15½%

Now, I travel with the government keeping the troops happy. It means (for us) no mortgage, although some do the grown-up thing and buy-to-let.

With no mortgage, Snowdrop and I have more disposable income now BUT we will have nowhere to live come 18 December 2015....
...let me know if any of you want two house-trained lodgers

Would you care to explain the line just after the word "government"?

[bubblewrap]

It would be nice to have some money to save...........................or spend.

[sallym]

It would be nice to have some money to save...........................or spend.

How True. Completely broke, no savings.
On the bright side family and friends all healthyish at the moment
I love my husband
He loves me
I love my dogs
They love me ( if I've got a biscuit)
We both have jobs.

Who needs loads of dosh?

[Alison]

It's fair enough to buy something which you will use or to modify your house in a way to get better use of it but I fail to see the point in spending money for no good reason, regardless of how much you have. We are fortunate that we both have quite good jobs and a small mortgage and therefore do have a bit left at the end of the month, I'm guessing this may not always be the case and therefore we put some by, even with very low interest, the capital is still there if we need it rather than having been frittered on fancy holidays and meals out that we don't really want. Always hated waste!

[di]

I agree to a degree Alison,to put money away for a rainy day,if you can afford it.What I never understand though is when families live this way,just so they can leave a tidy sum to their offspring,who in turn do the same for their offspring & nobody ever actually gets anything out of this money except the banks & government because each person puts it into savings ready to leave to the next generation.

[Marthaclematis]

Alison, I am assuming that you don't really think fancy holidays and lovely meals out are a waste (a fritter ?) Those occasional treats are what get me out of bed in the morning, LOL !

[jackie j]

I dont fritter money I was brought up by my parents having to struggle just to get by especially after my dad died and it stayed with me. My children never had the latest fashion, shoes, football gear or gimmick. They never had computers, phones or the latest gadget till they could afford their own. Holidays were spent with my nan when I was young, my kids holidays were spent on the beach or at home. Even though we earn a decent wage we still dont have any to save.