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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
Litchick · 23/11/2010 12:34

Sonnet there needs to be balance, I think.

On the one hand putting money aside is a great thing and necessary. None of us know what's around the corner. Redundancy? Leaking roof? Gear box breaking?

Also, we need to save for those things we do know are coming our way. Tution fees for uni. New car needed. Maternity leave.

However, I do think one should try to leave yourself enough for a comfortable existence, otherwise life becomes very drab, no?

Original poster
Hammy02 · 23/11/2010 12:37

Apparently the ideal is to have the equivalent of 3 of your monthly incomes. I do agree that you need to equate having a nice life along with saving for a rainy day (or rainy 3 months). As they say, you can't take it with you!

OP posts:
Litchick · 23/11/2010 12:38

Nordic rather than save a percentage, first work out how much is left after all essential expenditure. Include everything, not just bills.

Whatever is left, commit to put away, first in an easy access account, then if you've been overly optimistic you can dip in to it and reassess.

Once you're comfortable with the monthly amount, begi to transfer some of your savings into other things. High interest accounts are crap at the mo, but ISAs remain good value.
Property is also tanking at the mo and is a good bet, but long term obviously.

maktaitai · 23/11/2010 12:39

Our savings at the mo = £100 + some pension each; we've had a low income for about 5 years. But our debt is 1 x student loan and small overdrafts. However, it has felt very precarious having no savings, and my top priority as soon as I am working again is to get a serious cushion under us. I will be aiming to save 33% of my take-home income - very lucky to be in the position to be able to, I know.

FreakoidOrganisoid · 23/11/2010 12:42

I have four savings accounts. One for long term, one for short term emergencies (eg washing machine breaking down etc), one for holidays and trips and one for birthdays and christmas. I only put a few pounds a month in each at the moment and they don't cover things in their entirety but it helps to spread the cost of things out a bit. So for example I had £70 put away to go towards ds' birthday and Christmas, if I hadn't put it away each month it would have easily got spent on day to day stuff and I'd have really struggled to buy birthday and Christmas presents.

And I'm able to go to London for my friend's birthday without having to worry about finding the trainfare because it's in my trips and holidays account. Works for me!

SantasMooningArse · 23/11/2010 12:42

We have a little put aside but enough for eg car repairs / etc. Not as much as we used to but who does in this climate?

We donlt 'do' credit though so we know as well if we lost all tehre's be no nasty bills, just hand to mouth expenses. It's happened before to us and it's the way to go IMO.

neolara · 23/11/2010 12:42

Every since I started working I've put a small percentage of my wage into a separate savings account. As I never saw it in my current account, I never missed it.

detachandtrustyourself · 23/11/2010 12:42

Any one who doesn't have much/any money to spare for savings. Can I just suggest credit unions? You don't feel embarrased only saving small amounts. You can use a standing order if you are sure that you will always have enough to cover it (bank charges if it bounces are hideous). Many of them have cards you can use to pay into it at a paypoint in a shop. If you have an emergency you can either take some out relatively quickly, or arrange a low interest loan relatively quickly. As you are paying back the loan, you are still encouraged to pay a portion in to savings, even if it is only a pound a week. Keeps you in the habit of saving and you can increase it again when you are ready.

For absolute this minute emergencies, your eyebrows are driving you mad and you must get them waxed so you look ok facing the public at work, your DC's are pestering you for a takeaway, errm an actual emergency, have a small amount in a savings with a cash machine card account. Which you try to replace when you can. Or some credit unions do a current account, and you can arrange to transfer some of your savings into that account immediately, if it is needed.

ShadeofViolet · 23/11/2010 12:44

We have some savings - we put a small amount away each month - however it took a hit last year when DH was made redundant just before Christmas.

detachandtrustyourself · 23/11/2010 12:45

Striking out words did not work in my post.
Anyway. In fact, even if you are able to save a more substancial amount each month, a credit union is still a good idea.

marge2 · 23/11/2010 12:46

I have debts - DH has savings - how fair is that?? I am wife number 2. He was burned by wife 1, and is now as tight as a drum. There is a joint account but I am only alowed to pay into it and not take anything out. It is pretty much dormant nowadays.

christmasheave · 23/11/2010 12:50

We used to have savings, but they were wiped out by DH not paying into the joint account when I was on maternity leave so everything I'd saved went on the bills. I have almost forgiven him, but not this month when I had to find a few hundred ££ to fix the roof and we had no contingency.

MaybeTomorrow · 23/11/2010 12:54

We do have a very small amount of savings and have just renewed our mortgage on a lower interest rate so will hopefully be able to add to it now on a monthly basis (having said that, we have been paying a phenomenal amount until now!). BUT we do insist on saving £50 a month towards Xmas.

We have a Standing Order that comes out the day that our wages go into the bank so it's classed as another 'bill' that we need to pay on a monthly basis and it doesn't get touched. It just means that when Xmas comes, we don't have to worry as much. We also save all our vouchers for Tesco/Sainsburys etc and use those for Xmas food shopping.

But all this comes after racking up debts of £35k between the age of 18 and 28, spending it all on crap and then finally facing up to it and paying it all off. So now, neither of us have any credit cards because I'm massively scared about getting into that sort of debt again. It's actually turned me into someone who worries about money excessively and by having that little bit going into a Xmas fund every month, eases the pressure slightly...

detachandtrustyourself · 23/11/2010 12:56

Not fair at all marge2. Are you sure he wasn't tight with wife 1 as well? Sorry in advance if I offend you. Can't help it.

stickylittlefingers · 23/11/2010 13:01

I save a multiple of mortgage payments.

I thought it would be a good idea to pay back some mortgage while the rates were low (we're on a tracker and can prepay without penalty) - but then someone pointed out it makes sense to "hold on to your borrowings" while they are low interest (we started tracking when you could be very close to base rate) Confused

I must admit I still go with my gut instinct and overpay each month - I don't like having a huge debt, even if it is "normal" and "not huge" by many people's standards.

marge2 and Christmasheave - don't like the sound of your situations :(

expatinscotland · 23/11/2010 13:03

We have no savings and run at a net loss every month.

Chil1234 · 23/11/2010 13:04

"I dont know how much to save for example what %, any advice?"

Pick a number :) If you earn £1000/month start with £50. Put that away first, cover your outgoings and if you still have something left over at the end of the month increase your savings the next month. If you struggle, decrease it. The secret is to put the money away first, ideally with a DD. That way you get used to mamaging on what's left and you don't miss it so much.

mamasmissionimpossible · 23/11/2010 13:06

Yes we do, but I hope one day that we can afford to buy a house Other than that we are keeping some money aside in case dh gets made redundant I really wish I could be frivolous with our savings. I am grateful that we have been able to save something, as it is a good feeling to have, an albeit small, financial safety net.

detachandtrustyourself · 23/11/2010 13:13

sorry I sounded so blunt marge2. Stickyfingers put it much more nicely to marge2 and christmasheave.

NigellaPleaseComeDineWithMe · 23/11/2010 13:14

Put money aside every month - but the main plan is to save up each year to pay the maximum off the mortgage without any penalties. Have some other amounts as contingency for other bills etc. So hopefully now we can pay off the mortgage slightly ahead of when we too our very first mortgage out - its been raised and extended a few times with house moves but now back on track.

ShadeofViolet · 23/11/2010 13:22

I found the MoneySavingExpert forums are really good with helping motivate savers (including myself)

AbsofCroissant · 23/11/2010 13:34

Well, I am trying to get rid of the student debts I have at the moment. originally I was going to set aside savings, to cover it for a few years, and then I realised that this is barking and I ight as well just increase my monthly contribution.

I do have some "safety nets" so to speak, but they're not particularly liquid. I have two pension plans (one from my old employer, one from my current) and some shares, and I also purchase more shares through work every month.

However, I would prefer to be in DP's position - he has tons of savings (but then didn't have student debt at all).

emptyshell · 23/11/2010 13:46

Depends on the time of year.

I used to (till they let anyone cover classes and killed my income) make enough supply teaching that I could build up a decent bank balance to tide me over the lean times. Not these days. We have some savings when the money from marking KS2 SATs comes in and gets shoved straight in the savings account to live on over the summer.

We HAD a lot in the savings pots until we paid the house deposit the other day - now we've got nothing, still haven't exchanged contracts or got a completion date (can you tell how pissed off I am with this). When we get the rental deposit back from the current place we'll have a bit - but not much really.

I lie - I've got £5.43 in the building society account I've had since I was five.

Litchick · 23/11/2010 14:12

expat - that must be horrible Sad. I know you and DH both work.

What will you do aout the net loss if you don't mind me asking.

theywillgrowup · 23/11/2010 15:28

i have no pension set up and cant see that ever happening

do have savings £5-6k but only add once in a while, im loath to go under £5k as i worry about having something saved as the boys are getting expensive now (no maintance ever) and the house always needs something doing

but on the bright side morgage free and no debt but i can be as tight as a badgers bum

so i think im pretty fortunate as some are really feeling pinch,and would seriously be worried if i had no safety net,though in my youth and first married never had nothing and never bothered me,think it was my ex dh losing his job a few times that made me take stock