“Are we saving enough?”
Even the most disciplined families find themselves asking this question at some point. A solid financial plan helps enormously, of course – but there will always be variables no one can predict or account for.
Most understand the basic principle. Money saved today, given time to grow, translates into freedom, security, and opportunity further down the line. That logic isn’t complicated. What is harder to pin down is whether you are setting aside enough for your “future self” and the future of your family – something that, right now, can be hard to imagine.
If you are already saving and investing regularly, well done. But if it feels entirely painless, there’s a reasonable chance you could be doing more.
More often than not, the savings amount that genuinely builds lasting family wealth is the one that creates a small but persistent sense of discomfort.
The tug of war between your two selves
Every financial decision you make is essentially a negotiation. “Present you” gravitates towards ease and immediate enjoyment. “Future you” needs a little sacrifice now in exchange for something far more valuable later.
Research and lived experience both confirm that we tend to place too much weight on what feels good today and underestimate what we’ll need in 20 or 30 years. It’s precisely why the contribution level that feels right frequently isn’t. We anchor it to today’s comfort rather than tomorrow’s requirements.
The slightly uncomfortable savings figure is where these two versions of yourself find common ground. It’s the point where “present you” feels a genuine squeeze – perhaps thinking twice before booking that holiday, or pausing before putting down a deposit on a new car. Occasionally, it means saying no when you’d really rather say yes.
That tension isn’t a bad sign. It may well mean you’re doing the real work.
Rules of thumb will only take you so far
The personal finance world is fond of percentages. You may have come across the standard guidance to save around 15 per cent of your net income – or closer to 20 per cent if you’ve started later than planned.
These benchmarks are genuinely useful. They give most families a sensible starting point. But your situation is unique, and meaningful financial life management should be built around your actual circumstances, your collective goals, and your timeline – not a one-size-fits-all rule.
Beyond the numbers, though, we’d argue that your ideal savings rate is better understood as a feeling rathan than a figure. It needs to be something your family can sustain month after month, but it also demands intention and the occasional trade-off. That’s the sweet spot. Too easy, and you’re likely to be short-changing your future self and your family’s future. Too punishing, and you’ll abandon the plan the moment something unexpected crops up.
Somewhere between a manageable pinch and genuine hardship is usually exactly where you want to be.
This way of thinking applies more broadly, too. Your emergency fund should probably feel a touch larger than strictly necessary. Reducing expenditure works best when there’s a little resistance built in. Even career changes that ultimately boost your earnings tend to feel daunting before they pay off.
A moving target
Your savings number shouldn’t be set in stone. As circumstances change – children, school fees, property, inheritance planning – so should the approach.
Every pay rise is a chance to widen the gap between what you earn and what you spend. A gentle annual review – one that nudges you back into that slight discomfort zone – will help ensure the future you’re building towards stays on track.
Put simply, going easy on yourself today comes at a cost to the person you’ll be in decades. A degree of discomfort now is the price of real comfort later. It’s a trade-off, but one well worth making.
The role of a financial life manager is to keep guiding you back towards that discomfort zone – so that when the future arrives, you and your family are ready to enjoy it together.
The advice provided in our columns does not constitute legal or financial advice and is provided for your information only. Readers should seek appropriate independent legal and financial advice from a regulated professional
