Balancing between money and living for the now

[KittenCatt]

Does anyone else find it difficult to balance money and living their lives?

I’m in my mid 20s. I’ve started to invest in a S&S ISA, have a workplace pension, an emergency fund, I’m saving for a house with my partner and I save for holidays/city breaks.

I go on days out and have disposable income each month to go out with my partner, friends and family etc.

However, I can sometimes feel guilty for enjoying my money, then other times I feel guilty for having money aside. I certainly don’t want to be the richest person in the graveyard, but I don’t want to be working well into my 70s either, which is looking likely for my generation. I want to enjoy my money too, but I find this balance difficult.

Does anyone else feel this way too? Or can offer some advice?

If you’re in your twenties, you won’t regret anything you’ve listed - it sounds like you’ve got a great balance.

You save for the long-term so you’ll get brilliant compound growth (pension, S&S), you’re working on a house deposit (the quicker you get a mortgage the quicker you’ll pay it off, and your housing is secure), you go on holidays and city breaks and have fun with friends and family.

It sounds perfect to me. Well done! Keep going!

Best advice is carry on saving the way you are, but also do enjoy your money. You're doing really well for someone your age so don't worry so much.

Thank you

I am in my early 50’s. In my 20’s I was like you. Bit of saving and investing balanced with having a life. I have no regrets.

I did miss out slightly on holidays (compared to friends) as I prioritised my mortgage and home improvements. I made up for that pre pandemic and had some epic family holidays with my children.

Looking back I could have focused more on investments, but I was risk averse at the time and busy with work and children. I liked the security of money in the bank and it has all worked out ok for me.

I don’t regret not spending money on fancy cars, designer clothes, expensive make up etc. I can afford them all now if I want. I rarely bother but when I do splurge I enjoy my purchases without guilt knowing that I have earned them and can afford them.

You definitely sound like you have your priorities right. I hope everything works out well for you.

Thank you, so much for that. I feel as though I’ve been missing out on holidays, but I think it’s largely due to the pandemic.

I’m making up for it by booking a holiday for over Christmas (2023) for my mother’s 60th. 😊

If you're saving for a deposit, do you have lifetime ISA? 25% bonus on that for house deposit/retirement.

Yes, I have a Lifetime ISA. I’ve actually finished saving for my half of our deposit, I’m just waiting for my partner to reach her half 😊

Def sounds like you have priorities right. Now I’m in my 40’s I don’t care for fancy things. In my 20’s I pissed so much money up the wall on crap I can barely remember and feel regret now

*I’m in my mid 20s. I’ve started to invest in a S&S ISA, have a workplace pension, an emergency fund, I’m saving for a house with my partner and I save for holidays/city breaks.

I go on days out and have disposable income each month to go out with my partner, friends and family etc.*

Sounds like you have a great balance, especially for someone in their mid 20's. Don't feel guilty for enjoying your money.

Thank you!

In your 20s you must live. If you have few responsibilities you should do all the fun stuff. Life is for living. Do not get into debt. But if you have a job and work hard, I think you should use your money primarily for experiences, holidays, travel, hobbies. Life is too short and too boring.

Thanks for that, you’re right. I do lots of fun stuff, but I do try to keep my life balanced. I’d like to retire early, hence my S&S ISA. I deposit money in there each month, with a goal to retire early. That way, I can do more fun stuff when I’m older!

Yes absolutely. I used basically all my savings from my 20s to travel the world. I always wanted to, my mum died young and I just thought fuck it, ill do it now whilst time and health are on my side because you just don't know what will happen.

In my 30s now and probably behind which does scare me a bit but I do have 30k savings and don't regret a jot of my 20s. In fact I'm constantly missing them.

I too struggle with balancing for the future and living in the present and enjoying my life. Its a balance for sure.

I think you have the absolute right balance. I was super poor in my 20s as I did a lot of studying so I had to play catch up in my 30s and I did get on the property ladder, I’m now in my 40s and am so grateful that I didn’t spend all my possible ‘save a bit and spend a bit’ years pissing it up the wall because my friends of similar ages who did that are now panicking about how they will live or retire, they are renting but used to a higher standard of property than they will ever afford to buy, not prepared to lower their standard of living etc in order to save.

yes you don’t know what’s going to happen but a bit of sensibility never went amiss and I’m glad my past self made some sacrifices which mean I don’t need to worry so much now.

Thank you both, your experiences are very insightful!

Basically I think balance is always the best way. Enjoy your 20s - make the most of that precious wild youth. But also think for future you. It is a balance but can be done.

This is the only risky thing you've posted. How is the relationship? Co habiting / marriage / divorce with someone who doesn't share your values is the biggest risk to your financial future.

We have been together for four years (living together for three years) and share the same wants and values. My partner has been saving well and has £7,900 left to save for her half of the house deposit.

Would it not make more sense for you to just add to the deposit so you can buy earlier? And if you're set on 50/50 you can just agree partner will repay this in overpaying mortgage?

I did think about that, but 50/50 makes things easier for us…

If you keep alternating between "am I saving too much?" and "am I saving too little?" you're probably saving about the right amount :)

As someone in their mid-40s I would say that any money spent on "experiences" (travel, days out with friends etc) will get you more fun for your £s than money spent on consumable "things" (more expensive clothes / car etc). I don't regret any money I spent on holidays, but I've bought a few £50 shirts when £25 shirts would have been fine etc. Both end up in the bin one day. But I would also say I'm glad that I bought a house and have paid into my pension, as that has also stood me in good stead.

And whilst it's true you never know what's around the corner it's also true that about 95% of 21-year-olds live to be at least 60, so I don't have much time for the "might as well spend it all now" approach. For 95% of people that will turn out badly.

Thank you, so much for that @snowlaser. I feel so much better now. I invest £300 per month into my S&S ISA for retirement and save £100 per month for holidays and fees and furniture for our future house. Though, I’m also a complete sucker for nice things - I love experiences more!

You are very wise for someone so young - impressive!!
If you continue putting £300 every month in your S&S ISA you’ll have around half a million when you’re 60. Enough to tide you over until your pension age for sure.

Enjoy your youth, enjoy your lovely holidays and doing nice things with your partner - very well deserved

Thank you! I actually used a compound interest calculator. With my £500 initial investment and if I continue investing £300 a month until I’m 60 at 10% interest, I could have a million pounds of retirement…

How nice would that be? 😱

for* retirement. (Excluding my workplace pension)