Savings for the average person

[expatinspain]

How much money do you think is realistic for the average person (say in their mid 30's - 40's with at least one child) to have in their savings account? I'm not talking about high earners, rather those on a lower - middle income. I was talking about this with DP today and in my opinion he doesn't live in the real world.

He comes from a country where many people live with and are supported by their parents well into adulthood, basically until they get married usually, and many go to work for the family business. University is also fully funded by parents. The incomes are lower than the UK, but obviously living at home and having literally no outgoings, it's pretty easy to save a large amount of money.

He has a sizeable chunk in his savings, but feels like it isn't enough. He doesn't seem to get how I don't have savings, but I moved out of home at 18, had to fund uni myself through loans, lived in London and ended up as a single parent at 33 after splitting up with DD's dad and had to support her with next to no financial support. I think it's pretty easy to see how I'm not going to have a spare 25k in my back account for a rainy day!!!

So to settle the disagreement. How much do you think the average person I mentioned above has saved for a rainy day/contingencies?

I'm early 40s, a single parent, professional job but not a high earner and have about £3000 in savings.

I save £150 a month and try really hard not to dip into it.

My savings is only in the 3 figures...

I'm late 20s and had a few hindered saved (I was very proud as it's the most I've ever had) it was supposed to help with me being on mat leave but DH lost his job and I had to fix the car so that's all gone now. The next few months should be interesting but we'll manage. I don't know many people with savings tbh.

I save £150 a month and try really hard not to dip into it. I try to save this much, but end up dipping in for Christmas, buying extras like clothes for me and DD, DD's birthday party and presents, flights back to the UK once per year. It's like the savings are just paying for the extras and I don't get to save up any kind of larger amount. When I lived in the U.K. I was always in debt, so I suppose at least I'm better off in that way as I'm debt free now.

WindyMiller Mine too, sadly.

It's refreshing to see a thread on here where people don't have £100,000+ in savings. We had £5000 but needed new furniture and appliances so need to start over.

We have two slightly above average full time incomes, no kids, and have about £70k in savings having just used £85k on house deposit and fees.

Both just into our thirties and have mostly lived and worked outside the South of England but with correspondingly lower pay.

I don’t understand why this matters. Someone with zero savings may have a huge mortgage due to be paid off in the next couple of years. Someone with a large amount of savings may have an interest only mortgage. People do things very differently. Personally I don’t have any savings but I do have lots of assets. You just can’t compare people!!

The median salary in London is 40k. Assuming someone started back in the day on the salary of 20k, got a flat at about 30yo etc by 40 should have a decent amount of equity, a growing pension pot and probably 20k in savings.

I take it you’ve rented and are pretty skint as a single mum?

I'm 39, average salary (£36k), two children, currently divorcing, no savings, not a penny. I have a plan though to pay off the credit card debt that soon to be ex husband has lumbered me with and start saving within the next few months. I've been listening to Dave Ramsey and starting to following his 'baby steps' on getting out of debt and saving for the future.

Someone in the position you describe, I'd guess at around £500.

I'm 39, average salary (£36k)

I think that's actually 6k more than the average salary.

As in liquid, Maybe about 10 or 15k. We have investments but wouldn't be able to get to any of that cash is a hurry.

Both DH and I are top earners in the City (think top 1%) and have substantial savings, investments, pensions. However, I haven’t always had this financial security and I never take it for granted.

Absolutely none. It doesn't worry me though. It probably should but 🤷‍♀️ I can't get excited about it. I'm 39 and obviously shit at adulting. I have a good job, DH has a really well paid job but we are feckless wasters

I take it you’ve rented and are pretty skint as a single mum? I rented in London, yes and was broke. Always too much month and not enough money! Now I live in Spain and I'm not as skint, but due to the low salaries here, I still can't afford to save much.

BadEyeBri 😂

Im middle aged and have zero savings.

A few thousand in a pension and c 40k equity.

For renters with no home/ equity, no stable job so no pension it’s precarious and I think millions are in that boat.

I rented in London, yes and was broke. Always too much month and not enough money! Now I live in Spain and I'm not as skint, but due to the low salaries here, I still can't afford to save much.

I wouldn’t say that’s average, then. No point arguing with your partner over it.

I’m a single mom, early thirties and a teacher and I have more than a thousand in my savings account and have also saved another £1000 in my tax free childcare account as I want to be sure I always have more than enough to cover my DS monthly childcare. Endless things seem to be chipping away at it this month though.
Also, I only recently returned to work from Mat leave, brought a house and renovated it, all of which wiped my actual savings and mean I took out a loan, so I don’t really know that I can count my savings as I’m technically in debt. But it’s all manageable and I have very detailed financial plans for paying it off. By the end of the year (thanks to a student loan rebate due to mat leave, plus if I get exam board marking done) I ought to have a few thousand more saved and only then will I feel comfortable.

I’m 27 with £8k in one set of savings (would be £13k but I bought a car last year) & my parents have kindly been putting £200 a month into a help to buy ISA since I turned 22. They’ll stop contributing to that this year once it reaches the max £12k for the government bonus - I’ll continue adding to it at this point. There’s about £11k in there currently. I save £425 per month myself and then usually top that up every few months with whatever’s left in my current account. I have other smaller amounts squirrelled away for specific purposes.

However this is all only possible because our outgoings are very low, and we have been very lucky. My partner was gifted a high deposit for a house, he pays mortgage and I pay bills, in a fairly cheap area. I’m pretty well paid for my age. If we get the dog I want, or we were to have a child (unlikely), it would be much more difficult to save. We are reasonably frugal but have wiggle room financially so we’re not frugal because we HAVE to be, it’s just our natures.

From the time I owned my first flat in my early 20s, I have always had at least 3 months mortgage and bills payments in my savings account. It was something my mum always drummed in to me. I was by no means a high earner, it was just the first thing you did was to put something aside, no matter how small. This was how I saved my deposit and I didn’t buy until I had that 3 month cushion.

I think savings can be difficult due to the life stage that you’re at. Childcare costs a big chunk for many.
Together with amount saved, it would be interesting to know how much debt was running alongside it, in the form of credit cards etc.

Ideally, I'd say at least 3 months wages - to cover if life goes bad and you need to self sustain for a bit. The more the better, but that would be my baseline requirement.
I reality, I have 8 months worth of salary saved and my DP only has around 1 month in savings - but that's fine, cause I earn more, and between us, we are fine.

I’m late twenties and DH is 30. We have between £40-45K between us. I save a lot (only leave myself £100pm for fun after bills and savings) because I’m an anxious person and I worry about something happening and us not having any money. To be honest I’d far rather be a more chilled and carefree person with less saved but it is what it is.