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AIBU?

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Original poster

In thinking most people don't have any savings?

157 replies

Hammy02 · 23/11/2010 09:49

I was having a conversation with DP last night and he reckons most people in this country have some savings. I said I thought a small percentage might but not the majority. It's hardly a big issue but I just wondered what you thought? I always assumed most people pretty much live on their income and have little, if anything left over at the end of the month?

OP posts:
MummyMyfanwy · 23/11/2010 09:52

we have a very small savings fund for emergencies. We dont add to it every momth even just as and when we can.

DooinMeCleanin · 23/11/2010 09:53

We try to have savings, but like you say there is often very little left over after the end of each month and so savings tend to be used up on birthdays/x-mas/holidays etc as there is just no money after bills to pay for the extras.

Dh is shortly due a payout of around 2k though and plans on putting this in a high interest savings account not to be touched incase of emergencies.

The only people I know with savings with are fairly wealthy to begin with and old.

sparkle12mar08 · 23/11/2010 09:54

I think if there's anything left at all at the end of the month then not saving it is a very short sighted way to live. We have the best part of a year's salary each saved for the proverbial rainy day and other investment type decisions (renovations etc). But I have friends who literally live hand to mouth each week and have nearly as much debt as we have savings. I think on average you are probably right, most people have only a very small level of savings, perhaps a few hundred or a thousand or so.

pagwatch · 23/11/2010 09:56

I have always had to have a small amount put by - it was drummed into me as a child. Even when I was really really broke, I should try and have some crisis/emergency money.
Of course occasionally I was wiped out and of course some people have to live from one pay check to another. But I think it is daft not have some money stashed away if you possibly can.
Maybe I am the minority but I don't have credit cards either so I am used to being a it odd.

rastababi · 23/11/2010 09:57

I've always assumed that most people have something stashed away for a rainy day but then I may be wrong.

We sadly don't, we live on DH's wage on a monthly basis. Our savings ran dry a little while ago when our boiler broke during Winter and we had a buy a new one. We've never managed to build it up again.

It's a horrid feeling knowing that we don't have a financial safety net under us Sad

midnightexpress · 23/11/2010 09:57

It depends what you mean by savings. Many people pay into pensions, but as far as regular savings accounts go, I think you're probably right. A friend of mine was involved in making a TV programme about pensions and they found that most people vastly under-estimate the amount of money they'll need in retirement. It was quite scary.

HollyGoHeavily · 23/11/2010 09:58

Unless you are living totally hand-to-mouth, everyone should have savings - they are your safety net in case something unexpected happens. We have enough money saved in a couple of ISAs to keep our family afloat for 6 months should we lose our jobs - i'd be very uncomfortable if we had less contingency than that...

bigchris · 23/11/2010 09:59

We did have savings but over the years they've been spent paying off a career development loan, a new boiler when old one broke, double glazing, new appliances when old one broke etc. And due to drop in earnings after having kids never managed to build them up again. Many families don't have savings because they'd rather be a sahp.

earwicga · 23/11/2010 10:00

Just looked it up and approx 60% of people have savings of some kind or other.

domesticsluttery · 23/11/2010 10:01

Really?

I always assumed that most people saved.

We put money away every month, into ISAs and accounts for the DC. We also put money away every month for Christmas and holidays, but obviously those accounts are emptied once a year so are only short term.

I couldn't imagine not having savings to fall back on!

MarthaLovesMatthew · 23/11/2010 10:01

We have fairly significant savings. Back from the days when DH earned a high salary (recession killed that).

Good job too we do, otherwise we would have been up shit creek long ago.

Save save save when times are good...that's my advice.

girlynut · 23/11/2010 10:02

We don't have cash savings per se but a fairly substantial amount of shares which we hold onto in case of a real emergency. We're fortunate enough to work for companies which give us a share award each year and offer share save schemes.

I'm hoping that the stock market will eventually pick up and in 5-10 years time I can sell them and get the loft conversion done!

harassedinherpants · 23/11/2010 10:02

We did have but dh being self employed in the construction industry and having to unexpectedly replace our car a year earlier than expected due to an accident has greatly depleted them!

Christmas is a bit of a struggle this year, but come January we should be ok and will be trying to stash savings away. I hate not having any cushion!

LaurieScaryCake · 23/11/2010 10:03

Never once had any savings, when things go wrong as they always do it goes on a credit card and we pay it off gradually.

In the last couple of months it's been £450 on the cat - this will take a few months to pay off.

We never have any time between things going wrong to save up again.

RunforFun · 23/11/2010 10:03

I have savings.

Quite a lot.

Enough that if DH were to be made redundant we could still afford 3x school fees / mortgage etcfor at least 18m.

We came from modest backgrounds and as someone else said it was drummed into us to save from an early age, but I accept its easy to save if your income is great.

Fernie3 · 23/11/2010 10:04

We have spent amy savings we have on moving. We are not able to save much each month so it builds up really slowly. We rent our house and in the last 6 years have been moved on 4 times when we haven't wanted to be - landlord selling houses and once wanting to move in himself. We pay the deposit plus a months rent up front plus moving costs since we have no one to help us and cant possibly do it all ourselves ( we have a lot of stuff!).
Last time moving cost us around £3000. Guess what we saw our house for sale in the estate agents on our road a few weeks ago, joyous day. at the moment we have a grand total of £6.24 in our savings account so if we are moved on at the end of this contract it's going to mean taking out a loan.

hmc · 23/11/2010 10:05

I don't know - but we do (investments etc for better return). I suspect we are atypical though

TattyDevine · 23/11/2010 10:07

We do. We have shares, ISAs, I have an account I have £20 a week slid across by standing order, which banks up surprisingly quickly (and which I dip into regularly on occasion) and we also "underspend" each month which overpays our mortgage which will be gone in a few years if I remain being a tightwad prudent.

If something bad happened financially, this provides a buffer zone.

We are fortnuate to be in a position where we could do that and if it all changed, we'd be okay for a while.

Also got good pensions and all that gubbins.

If there is one type of saving you should try and do, its the pension. So many women dont have adequate pensions. If you are one you need to think about a stakeholder or something and get as much away as you can.

DiscoDaisy · 23/11/2010 10:07

We don't have any savings. We have no money left at the end of the month by the time everything has been paid out and bought. We don't waste money on treats or anything. After essentials and day to day living our wages are all gone.

nickypomtimes · 23/11/2010 10:07

We have a couple of grand in case of emerggency.

used to be more, but there have been a few emergencies!

my mum is on a pension and saVes a few quid a month. soon adds up.

notasize10yetbutoneday · 23/11/2010 10:08

We managed to save £20k in 3 years to buy the house we are in now. Its all gone now on buying and doing up the house bar £1k or so which does scare me as if we were to have an emergency it would have to go on a credit card.

hmc · 23/11/2010 10:08

Agree re pensions (but then my dh is a financial adviser). Our pension funds are well built up....

ClaireDeLoon · 23/11/2010 10:10

We have savings because DP is good at that, whereas I'm good at paying the mortgage, bills, for food, holidays etc and then spending what's left on me. I think most people I know would have savings of some sort.

hmc · 23/11/2010 10:10

Disco - that makes sense to me. I have a couple of friends who spend everything they earn, not because they are profligate (they budget very sensibly) - they are just not in a position to save

pagwatch · 23/11/2010 10:10

I don't think it matters how much. I think the op is asking if this is something people do on principal, as a conscious decision.
When I first moved to London I literally put three pounds a week into an account. DS1 maintains an emergency float in his pocket money account - it is about keeping even a small sum aside if you can, or chooising to spend all (any) disposable income IMO

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