Saving

[kawashima]

Because motorcycle is one of the most expensive hobby, I'm interested in how you are saving. I sometimes wonder how much I should have money when I retire without starving after that.
My saving amount isn't enough compared to colleagues who's already got married because I spend a lot for eating and hobbys.
Sometimes I wonder if I hadn't spent that much for hobbys, I might had more saving at the moment, and at the same time I wonder if I should enjoy more before getting older because getting old without hobby and much money doesn't look good.
How should I balance saving and spending?
Do you calculate how much you should save a certain amount when you retire and decide how much you save per month and then you spend within the rest for your motorcycles etc? Or you don't care about saving that much and enjoy fully now?
How about you?
____________________
own:2020 Serow 250
owned: 2012 YB125SP, 2008 TDM900, 2005 W650, 2002 LS125R, 2002 CB400SF, NS50F, C50 / Trip to UK(2009), Hokkaido touring(2013)

[Itchy]

Quite simply I don't think about it too much, in that it is far too depressing! My retirement plan is three fold:

#1 Never retire
#2 Cyborg technology hence I will visit Chiba black clinic in Tokyo bay in 2042 and have my body replaced by cyborg parts and live another 100 years.
#3 move to a cheaper country

The big problem with saving is that you need to factor in the time value of money, in that £10000 $10000 or 1000000¥ might be enough to live on today comfortably but inflation means that tomorrow this will not be the case.

Think back to the cost of a bowl of ramen when you were 18 , 25 and 30. Hence unless you can save a massive amount it is not that beneficial.


Myself I put money aside when I can, but not too much and skimp on the day to day things which can be significant, like bringing my own lunch box to work (when I am working). however I do not save as much as possible as it gets inflated away as above.

But its different for you as there are state benefits to keep you alive if you have no money.
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[kawashima]

Thanks for insightful post Itchy!
I started cooking(except lunch) myself and now eating cost had gone down from ￡420 to ￡340/month now.
Regarding employment when I have to retire at 60, I'm very pessimistic because I'm just a normal office worker without special skills. More worse we can't receive pension until 65 so we must live 5 years by saving only
This is called evil five years here.
Now I'm saving ￡340/month only as deducted. My salary won't go up till I retire for a certain reason. Maybe I should start cooking lunch box too
I heard average saving amount of 35-40 years old is more than ￡135,000 and I was so shocked .
____________________
own:2020 Serow 250
owned: 2012 YB125SP, 2008 TDM900, 2005 W650, 2002 LS125R, 2002 CB400SF, NS50F, C50 / Trip to UK(2009), Hokkaido touring(2013)

[The Shaggy D.A.]

One rule of thumb I've read is that to have a decent pension for retirement, you need to save half your age as a percentage of your salary when you start it - if you are 20, then you need to save 10%, but if you wait until you are 40 to start then you need to save 20%. This assumes that you retire at 65, not 50, and that the compound interest stays ahead of inflation

Personally, I'll be happy if I have (to quote Hetzer) "a warm hole to sleep in and food in my belly". I'm with Itchy on the never retire front; I intend to find a self employed occupation that I enjoy - something that makes me want to get out of bed and start work. I also intend to become as self sufficient as I possibly can. If that means living on potato and cabbage, then so be it - rather that than living on someone else's terms.

As far as deciding how much to spend on hobbies is concerned, I've long grown out of the "gotta have the latest and greatest/top trumps" phase. My bike is 10 years old with 50k on the clock, and it does what I ask of it. There's a couple of things I'd like to change about it, but not enough to make me want to put my hand in my pocket. I'd like a new synth, but I can already make the noises I want to make using what I already have, and can always download virtual synths. I fancy a new laptop, but there's nothing really wrong with the one I've got. Material goods are losing their appeal for me.

When years have been lean, I've gone without - sold the bike, gone without the car, sold the TV. In the good years I spend. In my adult life there have been more good years than lean. So far.
____________________
Chances are quite high you are not in my Monkeysphere, and I don't care about you. Don't take it personally.
Currently : Royal Enfield 350 Meteor
Previously : CB100N > CB250RS > XJ900F > GT550 > GPZ750R/1000RX > AJS M16 > R100RT > Bullet 500 > CB500 > LS650P > Bullet Electra X & YBR125 > Bullet 350 "Superstar" & YBR125 Custom > Royal Enfield Classic 500 Despatch Limited Edition (28 of 200) & CB Two-Fifty Nighthawk > ER5

[kawashima]

I really appreciate your post Shaggy. Thank you so much. It made me think more about how to live. Your formula was really helpful!
____________________
own:2020 Serow 250
owned: 2012 YB125SP, 2008 TDM900, 2005 W650, 2002 LS125R, 2002 CB400SF, NS50F, C50 / Trip to UK(2009), Hokkaido touring(2013)

[lostboy]

I got 2 pensions I started at 21, hopeffully get a good return on both when I retire, I don't wanna work any longer than I have to.
____________________
Never invite a vampire into your house you silly boy!

[daemonoid]

The rule of a balanced lifestyle is meant to be 50% of what you earn on needs (including housing), 30% on wants and 20% on savings (not all savings are the don't touch til you retire type).

[edit]https://www.getrichslowly.org/blog/2009/12/07/financial-balance-lets-you-enjoy-tomorrow-and-today/[/edit]

I reckon I'm close to this theorized best fit.

The reason pensions are a good idea is because they're tax free - I pay in 3% of my salary, but don't get taxed on it, so it's closer to 4.3% and my work also add 6% which is really quite generous - meaning I can't lose really on that saving... even if the pension doesn't perform well, and inflation outstrips the compound interest I'm still very likely to be up in real terms.

In order to top up to the pension I have a rental property, that's also a good deal - you put down a deposit (my property is up north where I was born so the deposit was small), do a bit of manual work for a few weeks, then someone else covers the mortgage for you. However I don't have a tenant at the moment, no one fancies moving to a 3 bedroom family house in Scunthorpe do they?

I also have conventional savings - isa's, premium bonds etc. these are more short term savings so I can buy the next bike / car / kitchen (the missus wants a kitchen, I want a ducati).

Like shaggy, I want to be self sufficient - I do a bit of freelance work, I hope to have a few rental properties... at some point the money I'm working for should hit a tipping point where it starts working for me, then I can muck about for the rest of my life. Unfortunately, my retiring at 30 plan has gone out of the window, well unless my premium bonds come up in the next month or so...
____________________
current: ducati monster 750
past: hyosung gt250r, bajaj pulsar 180, hyosung gt 125 comet
@thomasgarrard | www.straitjkt.com | www.racingseven.com

[Devils Advocate]

Savings?i dont understand what that word means.

I`m taking a fairly big risk with my impending old age in that i prefer to live for the here and now,day to day,month to month,year to year.
I cant justify making a 10-20% weekly sacrifice in my earnings to put towards a point in the future that may never come.
If i`m still alive when i`m 60-70-80 and not working i`ll have to make do with what little the state pension gives me from my national insurance contributions....and sit at home everyday gazing out the window while i wait for the grim reaper to come and collect his dues.
Ive got far too much to do at this point in my life that costs money,whereas when im older i doubt ill have that kind of drive or "need" for anything other than basic necessaties.....so why bother saving?

When i`m old all i`ll want is a roof over my head,bills paid,food in the fridge,no debts,and sky TV

[supZ]

having skint m8s helps as no one wants to go out so you stay in too

having a lot of regular dvd nights where we pile round someones house and watch a movie or 2.. but thats not overly cheap either as we always end up ordering loads of pizza. bar that its a cheap evening

cooking yourself is definately a good plan. cheaper and healthier.. and tasier if you're not useless with a frying pan
____________________
CBR954RR - Daily toy
CBR600RR - Trackbike

[Mr Hammers]

I wish I could save, but my overdraft gets bigger every month, despite at the beginning of every month firmly decreeing that *this* month I'm NOT going to spend anything.

My pension plan has remained the same since I was 14. Hope that the world ends, or civilisation crumbles before I'm 65.

Looking good so far, tbh...
____________________
A Guide To Powerbands

[Darth]

I'm diabetic and although i really do intend to stop soon, have been smoking the past 16 years. I am also a bit lardier than i should be. I cant see me having many 'golden years' to worry about

I have a company pension which has been on the go nearly ten years which should give me something to eat if i make it that far. I also have a savings account which sets aside a very small amount each month but never manage to amass anything as unexpected bills etc tend to wipe it out a few times a year.
____________________
Harold_Shand wrote: I suppose it's like anything, you get your fingers burned when you start out, you learn from it and eventually become a complete arsehole about the whole thing.

[Clanger]

I have always been a saver. Although I don't save a set amount each month. I basically get paid, then wait till the outgoings have gone out, then at the end of the month everything I haven't spent goes into the savings.

I generally don't spend willy nilly. I cook all my meals (for which I have found saves me oodles of money), and I top the car up as and when it's required. I see spending money in the car / bike and visiting my friends as more important than having a drink every day, or having a new gadget or some other materialistic item.

I do rallies, bike shows and camping through the summer and try and do at least one decent holiday every 1-2 years.

I don't have credit cards. I don't have a mortgage nor kids nor pets nor debt.

I have always been like this. As I've had to pay my way from a young age...it taught me to be careful with my money.
____________________
Be who you are and say what you feel, because those who mind don't matter, and those who matter won't mind - Dr. Seuss

[Itchy]

I think you shoudld open up a small biz selling stuff Kawashima, as you have a massive advantage of low overheads and that you are based in Japan.

People ALWAYS want CB1 /CB400/ 400cc bike parts and other Japanese motorbike parts that bigger companies like davidsilverspares or wemoto don't carry as they are too hard to source and make a margin on. My mate tried to open a company selling things but all websites are in Japanese and when you can't say more than mushi mushi on the phone they put it down on you!.

Myself I used to sell Japanese toys before one of my rivals Tony started ordering shipping containers full of toys from Bandai.

Check out https://www.hlj.com/ Scott who is a friend of a friend of an acquaintance he makes 2 billion yen a year (turn over).
____________________
Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.

[kawashima]

It's an interesting idea starting selling bike parts abroad. Looks like fun. I may choose low risk items.

[iooi]

[Blue_SV650S]

[daemonoid]

[neil.]

I ride a motorcycle to save money as it's the cheapest way for me to cover the distance of my commute.
____________________
CBT February 2008 | A2 June 2008 | Yamaha YBR125 (written off) | Honda CBF125 (current)

[Itchy]

[daemonoid]

Just saw this on the bbc:

https://www.bbc.co.uk/blogs/thereporters/markeaston/2009/12/do_you_sincerely_want_to_get_r.html

That's some serious cash in the average household!

Also interesting is the massive jump for households with a degree.
____________________
current: ducati monster 750
past: hyosung gt250r, bajaj pulsar 180, hyosung gt 125 comet
@thomasgarrard | www.straitjkt.com | www.racingseven.com

[kawashima]

[Itchy]

[daemonoid]

[Blue_SV650S]

[daemonoid]