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A quarter of Britons have as little as £1 in their bank account by pay day - and HALF have NO savings at all

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A quarter of Britons have as little as £1 in their bank account by pay day - and HALF have NO savings at all

half of us have been stung by hefty bank charges - sometimes as high as £10 a day - after going overdrawn in the last 12 months, which add up to up to £750-a-year in some cases.

 

Why bother saving when you can access instant easy credit???  Obviously until you can't....  However as people have been brought up with monthly payments why bother saving?  It's not like there's a recession looming!

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You do wonder who can afford to buy these overpriced houses when no one has any money.

Given the government penalises you for saving and takes it off you in your old age to pay for your care when non savers get it for nowt why bother.

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The worry is with so few having savings,  where for the employed middle class their job is soley a device to pay the mortgage, there is less political implications for the government destroying the real value of money and pumping up property assets. 

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I think I know why this is.

House prices are too high.  Rents are too high.  Cost of Living is too high.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

:lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol:

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Chasing status & "keeping up with the Jones's" is also part of the problem though. 

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44 minutes ago, canbuywontbuy said:

...and banks going broke.  And yet - home owners / BTLers think their prices will keep going up forever?

40% of wages goes on paying someone elses debt(rent). 

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3 hours ago, MARTINX9 said:

You do wonder who can afford to buy these overpriced houses when no one has any money.

Given the government penalises you for saving and takes it off you in your old age to pay for your care when non savers get it for nowt why bother.

one of life's mysteries. Second only to everyone apparently being so busy that they can average 4 hours of tv a day. 

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Whenever someone says to me 'can't wait till pay day' or similar, I'm bemused, and then worry for society. Many of these people earn good money and are in their late twenties to 40's. 

I can genuinely say I haven't taken notice of 'pay day' since I had a paper round, except  when starting a new job and making sure they got the bank details right. Ever since then there's always been enough money in the bank to cover anything going on in my life.

There are definite exceptions as always for people right on the breadline, but for most people there is no excuse.

 

 

 

 

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16 minutes ago, Frugal Git said:

Whenever someone says to me 'can't wait till pay day' or similar, I'm bemused, and then worry for society. Many of these people earn good money and are in their late twenties to 40's. 

I can genuinely say I haven't taken notice of 'pay day' since I had a paper round, except  when starting a new job and making sure they got the bank details right. Ever since then there's always been enough money in the bank to cover anything going on in my life.

There are definite exceptions as always for people right on the breadline, but for most people there is no excuse.

 

 

 

 

Must admit, I can't relate either, for weeks on end I can have no idea what is in my bank account, the minimum I'd have in there would buy me a decent used car (and I am not rich by any stretch). I log in and siphon off into the S&S ISA/SIP every now and again, check I am not being robbed and that is it. Even as a student I wasn't skint - I worked PT jobs and always had enough for a night out if I wanted to. I had mates who were on a diet of pasta only after 8 weeks! I have never been given a penny piece by my parents or anyone else either so not like I have had a head start on anyone else. I started working on a crap "graduate" salary too and never struggled then.

The people who live on the breadline though, I can't imagine how awful that must be, a big bill potentially not allowing you to fill your car up with petrol to get to work or something...

 

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1 hour ago, Frugal Git said:

Whenever someone says to me 'can't wait till pay day' or similar, I'm bemused, and then worry for society. Many of these people earn good money and are in their late twenties to 40's. 

I can genuinely say I haven't taken notice of 'pay day' since I had a paper round, except  when starting a new job and making sure they got the bank details right. Ever since then there's always been enough money in the bank to cover anything going on in my life.

There are definite exceptions as always for people right on the breadline, but for most people there is no excuse.

Not so much a problem at my work place, but the GF has to feign this sort of attitude in order to not stick out at her place. My job takes me to a fair few offices of other companies and I often overhear things regarding waiting for payday to do something stupidly cheap, even from those working in accounts/accountant roles.

So many people really would have absolutely nothing within a few months of having no pay cheque every month to pay for the finance.

 

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Charles Dickens said it best:

"Annual income: Twenty pounds. Annual expenditure: Nineteen pounds, nineteen and six. Result: Happiness.

Annual income: Twenty pounds. Annual expenditure: Twenty pounds, ought and six. Result: Misery"

It could be that so many people simply underestimate their incomes and overestimate their expenditure. 

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I don't get this either. There's a few people who I work with that can't afford driving lessons but have the latest smartphone. Ok we are low earners but some short term pain (budgeting) would benefit them in the long term. My duty manager for instance pays a combined £22 to bus him into his work and taxi home 4 days a week. That's £380 from a gross monthly pay of ~£1,400. In fact most people I come across who don't drive state affordability is the #1 reason for not getting behind the wheel. It must be <£750 to acquire a drivers licence so that's quite telling.

My current account balance never drops below £4k 

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2 hours ago, SillyBilly said:

Must admit, I can't relate either, for weeks on end I can have no idea what is in my bank account, the minimum I'd have in there would buy me a decent used car (and I am not rich by any stretch). I log in and siphon off into the S&S ISA/SIP every now and again, check I am not being robbed and that is it. Even as a student I wasn't skint - I worked PT jobs and always had enough for a night out if I wanted to. I had mates who were on a diet of pasta only after 8 weeks! I have never been given a penny piece by my parents or anyone else either so not like I have had a head start on anyone else. I started working on a crap "graduate" salary too and never struggled then.

The people who live on the breadline though, I can't imagine how awful that must be, a big bill potentially not allowing you to fill your car up with petrol to get to work or something...

 

This.  

Im probably an older generation than you, so managed to buy a home before the madness. Was always taught that if you can't pay one week one week, you can't pay two weeks the next. So, worked hard, payed down the mortgage, didn't take fancy hols or buy expensive cars. 

I don't look at my bank balance much either but know that I can cover day to day expenses, unless it is hacked, . But, hear these stories too and the madness of colleagues in their fifties taking on quarter of a million mortgage so that they can buy a 'better' house.  Mine is too small really for the family, but it is mortgage free and don't wish to revisit times of living off baked beans do as to pay down the debt 

I look round at all the new cars, mainly large SUV s. Shake my head and reflect on the 14 and 8 year old cars on our drive.  They both run perfectly, so why. Change?  Live within your means. 

However, I can envisage a future where the frugal and careful are sacrificed on the alter of debt as with Cyprus or Greece  and end up paying for the feckless, live for today mentality 

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I do have less than £50 by payday, but that's through choice as I siphon a chunk out into my S&S ISA as soon as I get paid.

I am slightly swayed by this 'let it build up a bit' mindset but I haven't tried it yet as I'm not sure how good my willpower is. Seems to defeat the point if I let build up, only to put it in once it's a larger amount. Lower fees as a percentage yes, but out of the market longer...

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3 hours ago, Frugal Git said:

Whenever someone says to me 'can't wait till pay day' or similar, I'm bemused, and then worry for society. Many of these people earn good money and are in their late twenties to 40's. 

I can genuinely say I haven't taken notice of 'pay day' since I had a paper round, except  when starting a new job and making sure they got the bank details right. Ever since then there's always been enough money in the bank to cover anything going on in my life.

There are definite exceptions as always for people right on the breadline, but for most people there is no excuse.

 

These are the exact people your savings or wealth will be stolen to bail out.  When your money is under democratic control it is inevitable as the type of people you describe are in a large majority.

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9 hours ago, Inoperational Bumblebee said:

I do have less than £50 by payday, but that's through choice as I siphon a chunk out into my S&S ISA as soon as I get paid.

I am slightly swayed by this 'let it build up a bit' mindset but I haven't tried it yet as I'm not sure how good my willpower is. Seems to defeat the point if I let build up, only to put it in once it's a larger amount. Lower fees as a percentage yes, but out of the market longer...

My GF deliberately keeps a low balance, moving money off to savings as soon as she's paid, it helps her to not spend as she doesn't see a large balance. However as she uses my CC to buy food etc and has no household bills coming out of her account (gives me a fixed amount a month to cover bills, food, mortgage interest) its easier to manage in that fashion and helps her control her spending.

At the end of the day it doesn't matter what you current account balance is as long as you have some elsewhere.

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16 minutes ago, Northern Welsh Midlander said:

My GF deliberately keeps a low balance, moving money off to savings as soon as she's paid, it helps her to not spend as she doesn't see a large balance. However as she uses my CC to buy food etc and has no household bills coming out of her account (gives me a fixed amount a month to cover bills, food, mortgage interest) its easier to manage in that fashion and helps her control her spending.

At the end of the day it doesn't matter what you current account balance is as long as you have some elsewhere.

There's a guy in Ireland called Eddie Hobbs who is like a 5'2" Martin Lewis. He always counsels the strategy of 'paying yourself first' and siphoning money into savings on payday. It has always worked well for me. The current account might be a little lean by the end of the month, but the savings accounts are thriving.

 

https://en.m.wikipedia.org/wiki/Eddie_Hobbs

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12 hours ago, Diver Dan said:

Charles Dickens said it best:

"Annual income: Twenty pounds. Annual expenditure: Nineteen pounds, nineteen and six. Result: Happiness.

Annual income: Twenty pounds. Annual expenditure: Twenty pounds, ought and six. Result: Misery"

It could be that so many people simply underestimate their incomes and overestimate their expenditure. 

I agree with both yours and Charles Dickens view although I suspect that most people overestimate their income and underestimate their expenditure.  Peoples poor numeracy/maths skills doesn't help here.  I have long felt that businesses and Banks do especially well in this country because we are, as a Nation, mathematically a bit thick.

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Two different types of people......some if there is £50 left the day before payday will spend it having a good time or buying something nice. If a regular surplus they may lease a better car, some can save shorter term say for a holiday in six months, other types will squirrel it away perhaps a kind of future security blanket, but still spend with discretion on quality and value not to deprive themselves.

The less you earn so the smaller and unreliable any surplus the more likely to spend it now.....how is £20 a month saving going to change anything that would make a difference they say......live now, worry later.

Yesterday is history, tomorrows a mystery, today is the present that is why they call it a gift. ;)

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1 minute ago, dougless said:

I agree with both yours and Charles Dickens view although I suspect that most people overestimate their income and underestimate their expenditure.  Peoples poor numeracy/maths skills doesn't help here.  I have long felt that businesses and Banks do especially well in this country because we are, as a Nation, mathematically a bit thick.

I got the two a bit mixed up.?

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We live in a capitalist society, the way to get ahead in such a society is to build capital - there's a clue in the name after all - yet very few seem to actually do this. Instant gratification via cheap debt seems to be far more popular.

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1 minute ago, dougless said:

I agree with both yours and Charles Dickens view although I suspect that most people overestimate their income and underestimate their expenditure.  Peoples poor numeracy/maths skills doesn't help here.  I have long felt that businesses and Banks do especially well in this country because we are, as a Nation, mathematically a bit thick.

I'd agree with this, though I imagine a large proportion of these people have never even bothered to try and work out their expenditure!

We've worked out our monthly food spend and it's come in pretty consistent over the last couple of years. If we ever spend any more from that account, it always seems to add up to exactly the amount we've spent on wine and takeaways...

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