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Original poster

Balancing between money and living for the now

45 replies

KittenCatt · 03/11/2022 23:35

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?

OP posts:
Amboseli · 07/01/2023 15:37

Well done you! I would only say put the max amount into your pension over the ISA because it's much more tax efficient.

Good luck for when you buy your first house!

ZeldaWillTellYourFortune · 07/01/2023 15:38

The more you put aside now, the easier your entire life will be.

Better to scrimp/get extra job in 20s than in 50s/60s, which will arrive faster than you can imagine.

Original poster
KittenCatt · 07/01/2023 15:48

@Amboseli Can I ask how so? S&S ISAs are tax free. I’ve prioritised my S&S ISA because I want to retire early (don’t we all!) So I can use the money in that without penalty unlike workplace pensions

OP posts:
Original poster
KittenCatt · 07/01/2023 15:49

Thank you, I love reading all of your responses 😊

OP posts:
Noicant · 07/01/2023 15:53

I think you are doing amazing. In my 20’s I was staring into the bottom of my wine glass wondering where my last fiver went. Sorted in my 40’s but regret not getting my shit together sooner.

Noicant · 07/01/2023 15:54

Oh yes definitely max out that pension (thats my big regret).

Original poster
KittenCatt · 07/01/2023 16:00

Thank you. My workplace pension is just an auto enrolment, which my employer only pays 3% into. I asked if I were to increase my contributions, would they match it. They said no :(

OP posts:
Amboseli · 07/01/2023 16:57

@KittenCatt because of the tax relief. Anything you put into your ISA has already had tax and NI deducted. Any money put into pension is gross.

I'd say put money into both pension and ISA but proportionally more into the pension.

Original poster
KittenCatt · 07/01/2023 17:00

Thank you!

OP posts:
Original poster
KittenCatt · 28/11/2023 04:59

Update:

My partner and I bought our first home in June 2023!

I’m also taking my mother to New York over Christmas to celebrate a big birthday! I’m so happy to be able to do this for her.

Though, my finances has taken a massive hit and I’ve only got £100 left in my Emergency Fund. Time to build that up again!

OP posts:
hattie43 · 28/11/2023 07:19

You sound like you've got the balance just right . It's refreshing to hear someone your age think about their future and not blow every bean on the latest iPhone , car etc . I used to work with someone your age who bought such an expensive car she couldn't actually afford to run it . It sat on her drive or rather her parents drive and she had no social life at all . Her whole wage was paying the monthly loan . Just silly .

You will never regret saving for your future , money to me is not about buying ' stuff' it's about having choice, you'll never have to stay in a job you hate , you'll never have to stick with a dead best partner because you can't afford to leave . Your 50's will come sooner than you think and you'll be so pleased you started saving young and not wake up in a panic in your 40's.

hattie43 · 28/11/2023 07:20

Dead beat partner

wildwestpioneer · 28/11/2023 08:03

Congratulations on the house Grin

Keep paying into your isa and pension. You will never regret that and will mean you have options to retire early. It seems a long way off but it'll come around surprisingly fast.

I did something similar in my 20s and I will be reaping the benefits in a few years time. Don't feel guilty for spending what you've got left. It's a necessity to save for the future, but you also need to enjoy the present

Original poster
KittenCatt · 28/11/2023 08:07

hattie43 · 28/11/2023 07:20

Dead beat partner

Excuse me?

OP posts:
CatonmyKeyboard · 28/11/2023 08:08

She was correcting a typo, don't worry!

CatonmyKeyboard · 28/11/2023 08:09

As in, 'you'll never get stuck with a dead beat partner'

Original poster
KittenCatt · 28/11/2023 08:10

Just read your message in full, so sorry 😂😂

OP posts:
Original poster
KittenCatt · 29/11/2023 06:12

wildwestpioneer · 28/11/2023 08:03

Congratulations on the house Grin

Keep paying into your isa and pension. You will never regret that and will mean you have options to retire early. It seems a long way off but it'll come around surprisingly fast.

I did something similar in my 20s and I will be reaping the benefits in a few years time. Don't feel guilty for spending what you've got left. It's a necessity to save for the future, but you also need to enjoy the present

Thank you! I’ve had to reduce the amount I’m investing by a bit, but I’m happy to be investing £225 per month 😊

OP posts:
Original poster
KittenCatt · 21/04/2024 11:08

KittenCatt · 28/11/2023 04:59

Update:

My partner and I bought our first home in June 2023!

I’m also taking my mother to New York over Christmas to celebrate a big birthday! I’m so happy to be able to do this for her.

Though, my finances has taken a massive hit and I’ve only got £100 left in my Emergency Fund. Time to build that up again!

Reviving this thread because I’m overwhelmed with trying to make all of the right choices…

I’m almost 28. I pay into my workplace pension and have a separate S&S ISA, which I will use to top up my pension in the future.

I used up my EF when we bought our first house 9 months ago, so I’m slowly re-building that up by saving £50 per month. But I also want to overpay on our mortgage to reduce the term, along with saving up for home upgrades…

I’m low income and my partner earns below national average, at the moment (job hunting).

Can we really do it all? What should we prioritise?

OP posts:
Bjorkdidit · 21/04/2024 18:05

You might find this financial flow chart useful. You'll already have done some of the steps, like buy a house, but you might also need to go back to some if things change, eg your incomes increase.

https://ukpersonal.finance/flowchart/

The Meaningful Money podcast is really good. There's a huge back catalogue but a good place to start would be a recent season that discussed the flowchart in detail.

https://meaningfulmoney.tv/category/podcast/season-25-finance-os/

The Flowchart - UKPersonalFinance Wiki

A starting point for your financial planning journey in 8 steps, from the wiki for Reddit's /r/ukpersonalfinance!

https://ukpersonal.finance/flowchart

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