Sunday, August 19, 2007

Nothing left for a rainy day

Britons living on the edge with one in four adults having no savings

Almost one in four Brits (23%) have no savings set aside for a rainy day - and parents with young children are those most likely to be living on the edge - according to new research from Combined Insurance... "Over the last two years, our community research has revealed that many Brits can see the cost of living going up, yet an alarming number have no savings at all. The longstanding rule of thumb that people should have three months salary in savings has gone out the window as many people are simply living from hand to mouth. The nation is living on the edge"

Posted by converted lurker @ 11:15 AM (1504 views)
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13 thoughts on “Nothing left for a rainy day

  • A rather depressing article that confirms what I have suspected for some time: we are a nation of debt junkies – especially the younger people.

    What would have been really interesting is to find out how much mortgage debt these people have as a proportion of their outgoings and how recently they purchased their properties.

    Despite all the economic problems, I still get the impression that most people still think house prices cannot go down. Those who have bought recently are desperately vulnerable to negative equity.

    Imagine borrowing 5x your salary with little or no savings! I wouldn’t be able to sleep at night.

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  • japanese uncle says:

    Given the level of real wealth (other than illusionary housing assets surplus caused by the Bubble), eg. level of savings, beans on toast and holiday in Blackpool, or in local caravan site should have been the option, rather than oysters in the Caribbean (and that on borrowed money).
    And how many of these without a penny in the bank, bought houses during the last five years by the massive mortgages? ‘Chaos of a gallactic order’ was easily envisaged by anyone with eleventh form level intelligence.

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  • Trouble is JU that most of the Bib Brother / Soap Watching part of our nation have a short termist mentality probably coupled with a similarly shallow level of intelligence that means they are just not interested in the well being of their finances or their long-term future. We are reaping the rewards of tabloid journalism, the cult of celebrity and lax lending practices amongst the many factors that have turned accepted social norms on their heads over the last 25 years.

    Most of the above could sort some sort of savings out by simply skipping a holiday and not using take-aways, over a year that would equal a couple of K in the bank at least.

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  • I was taught to save before you bought something, and have been unable to treat my my finances in any other way, I do have some money saved and no debts, recently I have been feeling like I got it wrong and was being either stupid or a bit of a mug almost prehistoric for not taking on a mortgage, credit cards etc as many friends have, not anymore I have no finacial worries and feel I am in a good position for the future when I do decide to buy a house, How people can live beyond their means without a thought for where the money will come from to pay off these debts is beyond me, when you dont have a great deal of money you understand its importance and how long and hard it takes to save the smallest ammount.

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  • Perhaps people have learned that the state will always bail them out and therefore they’ve learned that they have limited or even no responsibility. A sense of limited or no responsibility has probably led to irresponsible behaviour. This, of course, has wider implications such as anti-social behaviour. No sense of responsibility means they need not consider the effects of their behaviour on others. Self is all-important and living for the moment is more enjoyable for self than prudence or consideration of others.

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  • ju, please explain ‘chaos of a gallactic order’

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  • Well said enuii. Its not the governments fault, it is the people. The golden age of the chav is coming to an end.

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  • Nigel Brattle, Director at Combined Uninsurance commented:

    “Over the last two years, our community research has revealed that many Brits can scared into buying unemployment insurance policies which rarely pay out but give a handsome dividend to our sales staff. We thought we cobble together a survey on which to float this tat!”

    “Anyone wanting to look at our survey analysis techniques or the raw data can go whistle.”

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  • japanese uncle says:

    Chaos of gallactic order is exactly what is unfolding before your eyes. Banking system escaped full-scale meltdown by a whisker, a week ago. The same situation may happen again at any moment.

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  • stillthinking says:

    @Su . I agree completely. Everybody thinks the state will bail them out if they have no job or no accomodation and in the end no pension. What is worse is the hand-outs to state employees making up 50% of the economy, who obviously waste vast sums on a daily basis.
    The reason people don’t have savings is that simple, they aren’t needed under Labour. When I think about the amount of tax I pay I am just stunned. Where on earth does it all go?

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  • My view is there will be a run on the pound and not a HPC as such. There was a relatively small HPC in the 1930s in this country and history will repeat itself.

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  • japanese uncle, it seems that you are a very patient man. Helping those to see the bigger picture. The Feds only reduced rates to allow their companions to get their cash out and leave the rest of the world to hold the hot potatoes. Gold has dropped due to investors having to sell it to get cash. Cash is King now, gold next, who want to hold dept bonds that will never be realised. Ear we go, said the earwig as it fell off the table. No stoping it now. Old Moor’s Almanac advised spring 2006 that this July would be the downturn in property.

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  • C'mon Correction says:

    I would say the percentage of people under 40 with no savings is closer to 80%. I know hardly any of my friends and work colleagues that have savings; just huge mortgages.

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