To think saving money without a clear goal seems pointless?

[ByTidyHazelQuoter]

Building up large amounts in cash savings without a clear purpose feels a bit odd to me. I understand having an emergency fund but beyond that I tend to think money should either be working towards something (a goal, investing, etc.) or being used to improve your life in some way.

AIBU to think saving without a clear purpose doesn’t make much sense?

Paying off your mortgage or retiring early. Do they count?

Saving is a purpose

YABU

You do you of course, but it's very odd to have given other people's saving habits this much thought. Why does it matter why/how other people save?!

Surely investing is saving?

What purpose do you need? In case your roof needs replacing, you lose your job, your kids for uni, for retirement? Long term goals and short term emergencies.

Is a comfortable retirement a specific enough goal?

Yes, I’d count those as clear goals. I’m talking about saving large amounts without any particular end in mind, beyond just accumulating for the sake of it.

Anyone could wake up this time next year with entirely fresh new goals. The savings would certainly help

Yes, I’d include investing as a form of saving. I was talking about large amounts being kept in cash without a clear plan for it.

Read the can't get a job at 50 thread. That's the reason.

We are sort of in this position but also desperate to move. Ideally need to earn more to actually be with moving so we can borrow more. So the savings seem a bit pointless right now.

Saving just have a safety net seems a good enough reason - e.g. unexpected redundancy, tree falls on car, needing expensive dental work, your best mate decides to get married in Australia and you want to go...

The clear purpose is security. I went back to university this year, for four years total. We could afford it as my husband is a higher earner…. Then he got sick. Really sick. And he’d only been in a new job two months. Our income has been £500 a month for 3 months now and looking at another 2 of the same. I’m sure you can imagine that doesn’t go far in London especially when paying £1000 a month in tuition fees.

Thank god we had savings that we’d saved without a goal in mind.

Pointless to you, not to them, so they do it and you don't, or you have a specific goal. Both positions are ok ways to live.

I don’t have a clear goal for most of my savings but if the car breaks down tomorrow I know I’m ok to get it repaired or even replaced, likewise household appliances, I can go on an impromptu holiday if I wish, if I get made redundant I’m safe for many months, etc etc etc
basically any disposable income not spent each month (over and above what goes into savings as standard with a specific pot for mortgage over payments and holiday) goes into savings because it pays more interest than my current account. And yes, I accept this is a privileged position to be in.

We have over 120k and save 2k per month into long term savings
its being saved for
emergencies
job loss
mortgage overpayments

i think that’s justification enough for any amount tbh

You sound poor.

If someone has the ability to save at all then it's better to have the money ready when you think of the plan than think of the plan and have to save up for months or years.

Because it gives you options for the future. If you've paid off your mortgage and have lower outgoings then you do end up saving a fair bit. What are you suggesting as an alternative? Just spending it on stuff you don't really need or want?

Saving without a specific purpose other than future proofing doesn't necessarily mean you're going without stuff now.

I save at least £1000 a month, just because I can.

I agree with you. Even if the purpose is just to max out your ISA or your pension you should still have a goal.

Saving for things like a new TV or washing machine isn't really saving though - it's just setting money aside to be used in the near future.

Well what do you mean by a clear plan?
I have savings for which I don't have a "clear plan" but I expect some of it to be used to give the DC house deposits, some of it to be used for home improvements when we work out what we want to do, and anything left can be used to enable us to retire earlier.

Literally no one saves money just for the sake of it. Unless they have so much money that it's become meaningless.

Surely, nobody saves for the sake of it. Everyone does it knowing that the money is there should it be needed, whether that be for a new car, a new lifestyle, coping with a major event. And if the money is still there when the time comes, it can be used for early retirement.

I have savings purely because my income exceeds my outgoings. But I’ve recently had private surgery, had to unexpectedly replace a car, and may use some for a grandchild to get some specialist help, and I’m treating myself to an expensive couple of trips this year. So it’s been handy to have had a bit put by for no reason at all.

IMO saving without a clear goal is less pointless than frittering money away on things you don't really need.