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Eight Million Britons Have No Savings


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HOLA441

In the mid 90's I could comfortably support a wife + step daughter, mortgage on a 4 bed house in a nice area, 2 cars, eating out in restraunt once a week, nice skiing holiday every year, £200 a month on dialup internet and not feel financially too stressed on a 30K salary. That is surely how its supposed to be in a supposedly developed country.

These days the cost of living a bl**dy joke.

So what is costing you so much more today than in the 90s apart from the skiing holiday and fuel for the cars?... ;)

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HOLA442
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HOLA443

Yes I mean such a sense of entitlement is disgusting, anyone on under 60K should be growing thier own vegetables.

I think you have missed my point.

It is not that £10-12 on a pub lunch once a week is a luxury or wanting to enjoy this activity makes one entitled. It's that when you aren't earning above the median salary these pub lunches, along with all of the other discretionary spends (a couple of which I gave as examples e.g. new outfits), can in aggregate total quite a large amount which makes saving difficult if not impossible and one's protestations of being "broke" ring a little hollow.

Ironically my ex was quite the gardener and did grow a fair amount of vegetables.

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HOLA444

Someone can actually survive in this country on 40K - I'm impressed. Its funny how these "massive salaries" sound a lot when quoted for a whole year but not so much when you consider it equates to a "massive" 550-odd quid a week take home, christ this guy must be able to pull £300 out of his **** at a moments notice.

I remember realising that £40k a year sounded ok but after a very modest 5% pension contribution, Income Tax and Income Tax 2National Insurance deductions, only actually resulted in a take home of 20-something thousand pounds. Was quite a psychological shock to realise it at the time. Paid 40s, get 20s.

Not saying saving is not a good habit to get into....but there are still many things that need to be brought after eating and before saving.

There's short-term savings for say a holiday or a car, medium-term savings for school fees, or a wedding and long-term savings for a pension to bring in an income after working.

To do any of this requires a good disposable income and to be committed to a plan....but what is the motivation for some to save long-term when the sums are often so small any worthwhile benefit may never materialise and short-term funds could well end up being used for emergency purposes and not for what they were earmarked for.....one good thing about saving is if you can do it you won't have to end up borrowing money at high rates of interest....you can borrow it from yourself for nothing, but don't forget to pay yourself back. ;)

For once, not so twee and I agree. It is tiring to hear, on here, the high earners or childless skinflints telling me that by not having a starbucks a day/cycling to work/subsisting on porridge* (*delete as applicable) anyone can realise financial independence before they are 100 years old.

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HOLA445
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HOLA447

Who's we, paleface?

The original example was someone on 40k who didn't have the money to cover a 300 Gbp. bill, even when he bought a property at the lows. This was apparently an unreasonable expectation.

The report also found that while the majority of Britons are managing to put some money away, nearly a third (32%) estimated the value of their total savings and investments at less than £1,000

We're talking modest savings here, not early retirement

Edited by Britney's Piers
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HOLA448
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HOLA4410
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HOLA4411

I don't get how some people don't have any money to hand.

At one of my client sites the other day, one guy was ranting about an unexpected £300 bill and how it was ridiculous for them to expect payment all in one go, and before pay day.

This guy is on roughly £40k a year.

He is also old enough to have bought a house before HPI got started.

Surely he can find £300?

Seems like a lot of people on good incomes have so much debt to service (and a standard of living which they feel entitled to maintain via credit) that they live paycheque to paycheque.

A wider question would be why you would even bother to save these days (beyond an emergency fund) unless you have a specific goal in mind? With inflation comfortably outstripping interest on savings and set to get worse, there really is little incentive to keep accumulating cash which is being churned out from thin air in the billions by the central bank anyway.

If you have a surplus then make a rainy day fund and use the excess to invest in productive assets and/or enjoy yourself while you are relatively young and before our economy really enters depression when things are going to change dramatically.

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HOLA4412

I don't get how some people don't have any money to hand.

At one of my client sites the other day, one guy was ranting about an unexpected £300 bill and how it was ridiculous for them to expect payment all in one go, and before pay day.

This guy is on roughly £40k a year.

He is also old enough to have bought a house before HPI got started.

Surely he can find £300?

Absolutely agree, I am perplexed by some of the comments coming from the mothers at my children's preschool... at a coffee morning last week a primary school teacher (£30k+ salary and her husband a council employed graphic designer ?£25k) was bemoaning that they were still paying off Christmas. My family survive on an equivalent income with one earner and without trying I have £10k slushing around in my current account. £300 WTF

I will be boating across to Guernsey shortly ;)

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HOLA4413

Someone can actually survive in this country on 40K - I'm impressed. Its funny how these "massive salaries" sound a lot when quoted for a whole year but not so much when you consider it equates to a "massive" 550-odd quid a week take home, christ this guy must be able to pull £300 out of his **** at a moments notice.

depends what area you're from and if you have paid a mortgage of, or if you rent. + outgoings, train fares, long car commute or whatever.

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HOLA4414

If you have a surplus then make a rainy day fund and use the excess to invest in productive assets and/or enjoy yourself while you are relatively young and before our economy really enters depression when things are going to change dramatically.

this is my plan

it is that or horde beans, and i am pretty sure i know which strategy is going to get me more pussy :D

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