onlinesportspoker: Spending money vs saving up or investing?

Monday, 13 January 2014

Spending money vs saving up or investing?

Spending money vs saving up or investing?
First of all this is something one of my father’s clients does and not what I do. I do not own a house and do not earn as much as he does since I still go to college.

The guy owns a home worth Â£150,000 ($ 235,000) and therefore does not need to pay mortgage. His home is in Dagenham, East London. It’s a 2 bedroom house.

He is 40 and all of the money he earns in a year, he spends on himself. By this I mean he obviously pays his bills, food etc. + motorsport hobby (he does motorbike racing semi-professional), travels around the world a few times a year, plays professional poker tournaments from which he sometimes wins some decent money and has his dream car.

My parents are close friends with him and I am 100% sure he is not lying.

He earns Â£65,000 pounds a year and he has roughly around 5 grand left at the end of the year as he spends the rest.

My question is, do you think it is a good idea to spend nearly all of your money (and not get into debt by any means, he knows how much he can spend and not have any debts) in order to fulfill your dreams and enjoy your life to the fullest ?

or is it better to save up, invest and wait 5,10,20+ years in order to make some money in order to not have to work for the last 10-20 years of your life?

What would you prefer if you had your mortgage paid off and earned 65grand a year ?

Best answer:

Answer by Steve B
Live it up whist you can …

When he gets old, anything he has saved will ‘count against him’ for benefits .. his savings will all go on care home fees etc. …

… further, the Government is keeping the Bank rate down and printing money hand over fist, which is effectively it’s a tax on savings .. already inflation is about 4-5% and you can get less than 2% on yiour savings ..

.. so already the Gov, is stealing your savings at about 3% per year …

Finally, as those living in Cyprus have discovered, when the final ‘crunch’ comes, anyone with any savings will be a ‘prime target’ to repay the TRILLIONS that our Government has run up in debt ..

Know better? Leave your own answer in the comments!