What do people use their savings for?

theoldbreed

I know the answers are varied but I am just wondering what do people use their savings for?
Assuming you have a house so don't need a deposit... Do people generally keep building it up or use it, buy a new car, redecorate etc
I have some savings and wondered what I am actually saving for, unexpected situations like a breakdown or something yes....
Just curious as to what others do.

Thanks!

alchemist33

Paying off the mortgage early.

Delta2113

I just keep saving and saving. I'm worried if I get made redundant that after the 9 months and its means tested I'll get nothing from Social Welfare and will have to spend all the money I've spent years and years saving up.

I really should spend more - I'm the complete opposite to people who have to have a car, fancy clothes, keep updating mobile, jump in taxis etc.

dennyk

For mine, I do this:

- ~2-3 months of expenses as a buffer in my checking/current account, in addition to the current month's paycheck, to ensure the account is always above the no-fee threshold.

- ~6 months of expenses in a savings account. Been building mine back up over the last year after my overseas move, but now I've got ~2 months worth in a credit union account and another ~4 months left in my US checking account, so it's not too bad.

I'm also contributing 15% of my gross income to an employer-provided pension plan (and I hope to god that doesn't completely screw me over on my US taxes; I may end up coming to regret that decision...).

Normally when my emergency funds are sorted I'd put my extra savings into a taxable investment portfolio (got a fair amount in there now), but for now I may keep putting 'em in my credit union account in case I end up getting long-term residency and start looking to buy a place in a few years.

Unfortunately it's also harder for me to invest here, as I have to be very careful about what I do; if I were to ever put money in the wrong type of Irish investment account, it may trigger US tax reporting requirements that would basically force me to spend hundreds or thousands of dollars on tax preparation services every year for the rest of my life, or risk making an error when trying to do it myself that would result in a five- or six-figure fine. Even sending money from here back to my US account to invest it in my US brokerage account may require me to report and pay tax on the exchange rate difference from when I previously moved money from the US to here. (Basically, being a US citizen sucks overall when it comes to taxes... )

I also spend a fair amount on travel; a few trips to the continent this year so far, a few long weekends away here in Ireland, and an upcoming flight to the US over Christmas. So far those have all come out of my monthly discretionary income and still left me with at least a few hundred extra in savings each month, though (I love all these cheap flights!).

Travel is about the only thing I spend any money on, really; I live quite cheaply otherwise. I have a $90 cell phone, a €300 TV, and a 2006 VW Golf, all of which I'll keep until they die or otherwise become unusable. All my clothes are the same brand and last for ages, so I rarely have to buy new ones. I'll drop a couple grand every four or five years on a fancy gaming PC, but that's about it. Not really "saving" for anything in particular, honestly, just trying to keep my finances in good order for whatever comes in the future.