Hah...

[azekeil]

My last update seemed to come out differently to the one I was imagining in my head. I wanted to talk about approaching my 30th and feeling that I was having fun but not really following my dreams or ambitions, like blacksmithing (specifically weaponsmithing). I've always been the sort to have something to look forwards to, to work towards. I've also been adverse to spending money on entertainment (harks back to my student days, I guess). So I guess I've been coming to the conclusion that it's not wrong to want to spend a bit of money on hobbies, even when those hobbies could be quite costly - if I can afford it, that is.

So, this is why I want to sort out my finances, so I'm not putting my hobbies before my original and sensible plans of making sure I have a decent pension and no mortgage in my old age. Anything left over after that will be money for toys; which is better than my current cycle of spending money on toys and not actually saving up for the house improvements or anything sensible. I know this is a phase and I know it's going to change soon, but I guess I just want to make sure I'm not committing myself to a boring life with my plans for the future without living while I'm young enough to enjoy it fully :)

Other people don't seem to have these issues - or if they do they don't seem to talk about them much. So, how do other people view these sorts of things?

Comments

[dennyd.livejournal.com]

I just blow my wages on whatever takes my fancy (mostly junk food), also run up debts each month, and then rely on some miracle or other to save me from myself before it all gets too out of hand.

So far, this system seems to be working, but I'm not sure I'd recommend it :)

[azekeil.livejournal.com]

Heh, if it works for you.. :) I think I'd be a nervous wreck..

[woz.livejournal.com]

I have considered this dilemna on many occasions.

There are so many things to do in your spare time. So many gadgets and toys to play with that you could constantly buy "stuff" every month. When you do you just feel guilty that you are not putting any aside or investing enough.

My solution was to go out and make sure I earned enough to do both. Alas - in working towards that goal I seem to have forgotten the enjoyment aspect and became somewhat reclusive and a bit of a workaholic. I am working to redress the balance.

Its a tough call to make. Pensions these days aren't even safe enough to consider a worthwhile contribution to a decent pensionable lifestyle. It seems the only investment you can make in todays economic climate that will cater for your old age is property. Sadly the investment required to hold a portfolio of properties is significant at the outset and therefore either precludes most people or necessitates the reduction of lifestyle today in hope of a better lifestyle tomorrow.

There is no easy answer but the obvious solution is to try and gain a balance. If you can't I would suggest you just blow all your cash having fun and hope that you can rely on the government at your time of retirement to look after you.

[azekeil.livejournal.com]

Thanks. I hope to earn enough to do both - but perhaps in a more moderate style, if you can call what I do a style..

I've only really started earning enough recently to get the toys I've always wanted. Now I just need to temper that long enough to firmly establish my future and I'll be happy to save/spend what I have left - which should still be considerable by my previous standards.

[azekeil.livejournal.com]

That's very true. I had actually heard of it before and I suppose what you say makes sense - but I considered my 'twenty-something' crisis (as I had heard of it) had happened at uni. Mostly it's around finally making it into the real world and the anti-climax that happens once you're fully fending for yourself.

This is a second weaker version of that I guess.

Anyway, yes, there are of course people far worse off than me. I am grateful for the start I got in life, but the only reason I'm where I am today is because of the work I put into getting here.

[cryx]

I ponder it too.

I worry that after 2 years of contributing to a pension, I stopped due to job change etc, and I don't have a pension plan now :( :( I'd like to invest more when I return to the UK. I try and hunt advice, but it often seems very contradictory, and I've been stung by 'experts' giving me bad advice in the past :(

[azekeil.livejournal.com]

I think the key is to do something, as unless you're really dumb or unlucky it will be better than nothing. On this basis I plan to make sure I contribute around 18% of my annual salary towards my pension. Work contribute 5% of this tax free, and I contribute the rest. Using my pension fund to buy an annuity, this should provide around 1/2 to 2/3 of my final salary (taking into account inflation), which sounds more than reasonable to me.

And that's about the limit of my knowledge on the subject..

[cryx]

Do you have your own personal pension or is it one through the company?

[azekeil.livejournal.com]

I have two company ones, both managed pension funds with the same pension company. The new one is 1.3%, the old one is 1% management fees. I need to keep the new one because that's the only one the current employers will pay into, but I will be making contributions to my old policy (which I can 'convert' to a personal pension without any problems).