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scruffian

Saving Money

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I don't usually like to blow my own trumpet, but one thing I am quite good at is saving money. I have been saving since I was 16 and even th

Edited by scruffian

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Sorry I have no idea what happened there. I edited my post and most of it disappeared.

Let me start again...

I am on quite a low income, but I have been saving for a deposit on a house for a few years and have got quite a good way there, despite the fairly hefty rent I pay. I not very keen on buying in the current climate, but my wife and I are starting to think about starting a family. I am aware that my salary alone will not cover the rent and bills let alone living costs, but I have ben assured by friends and family that we should be able to make ends meet if we claim benefits.

I have looked into this and it seems that you can only claim most benefitys if you have savings or investments of less than £16,000, which I don't.

So are far as I can work out it doesn't make sense for me to continue saving, since this money will have to be spend on day to day living costs until I become eligable for benefits.

If anyone has any ideas on ways round this that would be very helpful

Thanks

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If anyone has any ideas on ways round this that would be very helpful

Thanks

'Spend' your money on gold coins and stash them under the matress, you've then got a store of wealth that won't show up as savings, ok you could argue this is an investment but who's going to know. People here may have suggestions of a non-monetary store of wealth other than gold?

Edited by Manic Miner

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I have looked into this and it seems that you can only claim most benefitys if you have savings or investments of less than £16,000, which I don't.

So are far as I can work out it doesn't make sense for me to continue saving, since this money will have to be spend on day to day living costs until I become eligable for benefits.

If anyone has any ideas on ways round this that would be very helpful

Thanks

I don't know about ways around this.

I know that saving (I think you mean in a bank account?) CAN be right at certain times.

My point?

HOW MORALLY WRONG IS A "SYSTEM"* WHICH CAUSES SOMEONE TO ASK THIS QUESTION?

(scruffian - I am not having a direct pop at you.)

*Fiat currency, benefit/taxation, spectulative markets etc, etc, etc.

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I'm sure there are things you could do, like saving in your wife's name, or wrapping £14k in a pair of ISAs. That's off the top of my head, but it must be worth your time to research at least. Maybe they are shelters from a benefits pov.

As Vinny said, the system is wrong if you have to ask this question.

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that's what i think as well. the government are supposed to be encouraging people to save money, but for people who are in the lower ends of the payscale it really doesn't seem like they are. i feel trapped - i dont want to buy a house becasue its not a good time, and i don't want to claim benefits - i'd rather earn my living fairly, but the cost of living in this country is so high. We are a working couple, both with degrees, but wages just don't reflect the cost of living.

My original post also contain some information on what counts as capital:

For Housing and Council Tax Benefit purposes most savings, investments and assets owned by you and your partner are treated as 'capital' and examples of the most likely sources are:

savings in cash

current accounts (even if you only use it to get things paid into it like wages or a pension or you just use it to pay bills)

money in a bank, post office or building society account

money in savings schemes

money invested with local authorities

national Savings Certificates

Premium Bonds

Funeral Bond

stocks and shares, bonds and other investments

property or land (but not your home or the home of your partner or an aged or incapacitated relative).

The following do not count as capital:

personal possessions

certain business assets, if you are still working in the business

surrender values of Life Policies

sale proceeds of your home (for up to six months if you intend to purchase another home)

money from insurance claims in respect of loss or damage to home or personal possessions (for up to six months if used to replace or repair)

money deposited with a Housing Association for the purpose of obtaining a home

any Social Fund payment

Personal possessions do not count as capital, nor does the home the person lives in. Money in a bank, Building Society etc counts as capital, as does cash. Stocks and shares also count as capital, subject to a 10% reduction. Land or property other than the house the person lives in also counts as capital (less 10%). If people give capital away in order to try to gain entitlement to, or a higher amount of, Income Support they can be treated as still having the capital.

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that's what i think as well. the government are supposed to be encouraging people to save money, but for people who are in the lower ends of the payscale it really doesn't seem like they are. i feel trapped - i dont want to buy a house becasue its not a good time, and i don't want to claim benefits - i'd rather earn my living fairly, but the cost of living in this country is so high. We are a working couple, both with degrees, but wages just don't reflect the cost of living.

Some advice, and some background, if I may?

Invest your time reading books and websites like this. Try to learn how to invest and perhaps trade. Try (I know it may be hard at first to see opportunities) to take (legally) advantage of your,or any, situation. This will indeed take lots of time - I would not jump in with a large % sum in any "market" at the moment FWIW. You might want to study, observe and practice for a year or so say.

I hope that does not sound pompous? A bit of backgound:

I lost my home and practically all my other assets in a "court of law" 3 years ago. (left with 12K of stock + pension and 5K debt due to legal costs).

My income is about (after tax /NI / Child maintainence) 12K per annum.

Through investing /trading I could now easily afford a home of my own if I wished. It CAN be done.

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Took the words out of my mouth vinny...

If you're on a low income, then saving is'nt going to work well, whats the point in scrimping etc if you're only going to save a small amount. Remember that time spent learning is one of the most valuable investments...figure out a strategy for earning more, or improving the returns on what money you have. Good luck!

...hmmm, I sound like some patronising lself help guru...

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Through investing /trading I could now easily afford a home of my own if I wished. It CAN be done.

Vinny,

I’m not sure if this element is that helpful. Yes, increasing one’s wealth in the financial markets can be done, but not everyone is up to the task. The time expended and needed to invest in the pursuit of monetary wealth is, in these times, a sad reflection against the little time that is spent on emotional well being, family life and community. The current melee and losses in the downturn in markets is one indication of that.

Scruffian,

Although you are rightly anxious on the costs of starting a new family with you as the sole earner, it is also worth looking at ways to save money and to live frugally. There are many references on the net in this regard. As to benefits, well, I’d happily endorse you taking some of my taxes to support the well being of your family – if that’s what it takes for you to be confident in raising a family.

I have plenty of platitudes about how money doesn’t fundamentally play any part in raising a child, but then all I’d really be saying is: be me.

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Vinny,

I’m not sure if this element is that helpful. Yes, increasing one’s wealth in the financial markets can be done, but not everyone is up to the task. The time expended and needed to invest in the pursuit of monetary wealth is, in these times, a sad reflection against the little time that is spent on emotional well being, family life and community. The current melee and losses in the downturn in markets is one indication of that.

I'm tempted to agree with your reply. Time that is spent on emotional well being, family life and community is oft neglected with predictable results. Sadly not everyone can find a balance in life.

I also agree that not everyone, for whatever reason, is suited to investing or more often trading.

I do think, though, that everyone can learn and improve themselves. Everyone in some way WILL be affected by various economic cycles. An above par understanding can help people from making mistakes and actually keeping OUT of a particular market (or timing, say, a buisiness start up better). For instance how many who are reasonably bright - but have NO understanding of the housing cycle in this country - have managed to mortgage themselve to the hilt of late? They may well have more time in the open air with their family in the coming years!!!! That is the sad thing.

saving = defered spending

Borrowing = advanced spending = deferred spending = eventual economic contraction = HPC. ;)

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Thanks for all your replies. I have thought about your advice - I am not really interested in accumulating wealth - I am happy as long as I have a guitar and a bike (and food and shelter!).

I still think it is important to be informed about the economy, so I have read quite a few posts in this forum now and have also been reading at GEI. I am learning a lot but will probably have more questions soon.

I think the answer to my original question is to buy physical gold, as it counts as a posession surely, not an investment.

Thanks for all your help

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scruffian,

If you've got a family member you can trust (Mum or Dad?) - give them the money and put it into an ISA/High interest savings account for safe keeping. Drip your account out slowly though so as not to raise suspicion.

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Sounds like you need a change of carreer if you have a degree and your wages do not reflect the cost of living.

I had to change jobs to be able to afford a mortgage on a property last year and it seriously was the best decision of my life. I was in the same boat as you on a low wage with a largish deposit after saving for many years.

Forget about all this buy gold rubbish, its far too risky at the moment for your situation. Benifits are there as a safety net, not to top up your low wage.

Edited by zag2me

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Forget about all this buy gold rubbish

I was nearly taken in by this, but then I saw

I had to change jobs to be able to afford a mortgage on a property last year

I think gold is a much less risky investment than property at this time.

New job is a good idea though I have only been in this one 5 months so I had better wait a while.

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the show has just started

Property looks safe at the moment with all this share crashing and gold crashing as well

wait and see - just dont put all your eggs in one basket

Edited by notanewmember

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IIRC the 'working class' used to 'wear' their wealth in the form of gold chains, sovereign rings

plus ca change.....

the show has just started

Property looks safe at the moment with all this share crashing and gold crashing as well

wait and see - just dont put all your eggs in one basket

Even buying a studio flat will involve putting all your eggs in one basket. Unless you own a chicken farm.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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