How much do you have in your savings account?

Snyper564

Expert Member
Joined
Oct 1, 2008
Messages
2,986
#81
I like this philosophy. Trying to get my SO to like it too lol.

It's also about balance though - I'm not going to live like a peasant in order to have a big bank balance. And at the same time, I'm not going to live like a millionaire, but always being in debt
That's exactly it. I have really nice stuff. I have the PC, espresso machine, home I want but I am not going to chase random things, latest tech. I am content. Not living beyond my means. Don't need the latest etc. But I am happy, I am comfortable and content

Still drive my corsa lite. Its paid off, cheap on petrol, services are also cheap. I can easily afford pretty much any car I want but I don't care for it. I'm not going to try and impress you, it may be the cheapest car in the car park at work but I don't care.

When kids are added to the mix will upgrade accordingly but till then I'm smiling all the way home :)
 
Last edited:

cguy

Expert Member
Joined
Jan 2, 2013
Messages
4,530
#82
I have started following some of what the minimalists (google them you will find a lot of info) say the last year or so.

I have stopped my pursuit for more STUFF and for the most part useless stuff. There is nothing wrong with buying something, as long as it truly adds value to your life. Also you shouldn't be buying anything on debt (house not included - not getting into car conversation) if you are buying a TV on credit you shouldn't be doing it. Don't care if you can afford the installment in reality you are impatient and your impatience will cost you interest.

I am a happier person not constantly chasing after the latest fad/technology/car and my bank balance reflects this very nicely.
Although I can afford a whole lot of STUFF, my personal philosophy has always been that it actually makes one more miserable. I detest clutter and own nothing that is particularly "showy". I have no jewelry (no watch, cuff links, etc.), apart from an inexpensive wedding ring. My wife's most expensive piece of jewelry is about $4k. She can of course buy whatever she wants, she just shares my philosophy - more stuff is more stuff to worry about. We have only 1 car (and were car free for about 5 years before we got the one we have now).

I see debt as a form of clutter, so I have no debt, and even when I bought personal properties to live in, I would only choose something that I could pay off within 8 years, and typically paid it off within 2-5 years. I would much rather spend money on nicer hotels, first class tickets, etc. Essentially, things that make living and travel easier.
 

Snyper564

Expert Member
Joined
Oct 1, 2008
Messages
2,986
#85
Although I can afford a whole lot of STUFF, my personal philosophy has always been that it actually makes one more miserable. I detest clutter and own nothing that is particularly "showy". I have no jewelry (no watch, cuff links, etc.), apart from an inexpensive wedding ring. My wife's most expensive piece of jewelry is about $4k. She can of course buy whatever she wants, she just shares my philosophy - more stuff is more stuff to worry about. We have only 1 car (and were car free for about 5 years before we got the one we have now).

I see debt as a form of clutter, so I have no debt, and even when I bought personal properties to live in, I would only choose something that I could pay off within 8 years, and typically paid it off within 2-5 years. I would much rather spend money on nicer hotels, first class tickets, etc. Essentially, things that make living and travel easier.
That's super awesome! Then we definitely on the same wave length!
 

Cube3

Expert Member
Joined
Jun 3, 2008
Messages
1,199
#87
about 155k in bond and 250k in 7 day notice, 25k in cheque account.... not paying off the bond because renting out a place/tax etc.
 

jman

Expert Member
Joined
May 9, 2014
Messages
2,271
#89
Although I can afford a whole lot of STUFF, my personal philosophy has always been that it actually makes one more miserable. I detest clutter and own nothing that is particularly "showy". I have no jewelry (no watch, cuff links, etc.), apart from an inexpensive wedding ring. My wife's most expensive piece of jewelry is about $4k. She can of course buy whatever she wants, she just shares my philosophy - more stuff is more stuff to worry about. We have only 1 car (and were car free for about 5 years before we got the one we have now).

I see debt as a form of clutter, so I have no debt, and even when I bought personal properties to live in, I would only choose something that I could pay off within 8 years, and typically paid it off within 2-5 years. I would much rather spend money on nicer hotels, first class tickets, etc. Essentially, things that make living and travel easier.
This.

Stuff only makes you happier for a very short period. Then it becomes the new norm and, like you say, just becomes clutter. Experiences though, like holidays, adventures, etc are what really make me happy. So I'm happy to spend more on these kinds of things. I do however, have all the automated saving and investing (Pension, TFSA, etc) sorted out first
 

Snyper564

Expert Member
Joined
Oct 1, 2008
Messages
2,986
#90
This.

Stuff only makes you happier for a very short period. Then it becomes the new norm and, like you say, just becomes clutter. Experiences though, like holidays, adventures, etc are what really make me happy. So I'm happy to spend more on these kinds of things. I do however, have all the automated saving and investing (Pension, TFSA, etc) sorted out first
Now if we could just get more ppl onboard!
 

SauRoNZA

Honorary Master
Joined
Jul 6, 2010
Messages
32,552
#91
R29,307.90

In my throw anything extra you won't miss account that will one day be used for an overseas holiday or some such.
 

cguy

Expert Member
Joined
Jan 2, 2013
Messages
4,530
A man lowkey trying to build my finances any tips
As others have said, "spend less, save more". Of course, this doesn't really do much for motivation. One of the most valuable exercises a person can do is run the calculations to fully understand their financial situation, and get an idea of how aggressive they need to be at this, and what the consequences will be of not meeting their goals.

Everyone should really be conservatively estimating how much monthly income they need to live past a retirement age, their longest estimate on expected life span, and therefore the amount of savings needed at a particular point in time, assuming a worst case low-risk return.

Some simple, exercises:
- How much have you saved now, and how long would this last if you stopped working today?
- At your current savings rate, how much will you have saved at your estimated retirement date? How long will it last?
- How much do you have to increase your earnings, to increase your savings, in order to meet your retirement goal?
- How much can you reduce your post-retirement income to, to get by?
- If you had to stop working right now, how long could you support your lifestyle? How long could you support your most downsized lifestyle?

It's bizarre, but I have suggested the above to a friend, and it turned out that he (at 41 years old) had never considered that at some point he wouldn't be able to work, and was pretty much assuming that no savings beyond what his company was taking out of his paycheck for pension would be sufficient (definitely is not).

I also have at least one friend (42 years old), who has almost no savings (does have house equity though), who had been expecting that his income would take off at some point, and savings would become inevitable at that point. He is already earning over R1m+, and doesn't save a cent, so I don't really know at which point he expects this to kick in.

In both of the above scenarios, I realized that they have a tendency to believe that they are effectively immortal (or at least believed they could do their jobs until both they and their wive's dropped) and that their means of income is perpetually safe. They are quite calm, going to nice restaurants, and going on on nice holidays, despite being no more than three paychecks from having to sell their property on a fire sale just to put food on the table. It's this false sense of invulnerability that has put them in a precarious situation, and all it will take is one serious illness or a sudden shift in their respective industries to halt their lifestyles in their tracks.

Anyway, suggesting the above calculations did help them somewhat. One accused me of trying to make them "panic" - some panic is not a bad thing if it can pop that bubble.
 
Top