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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

2/5 of people have less than £100 in savings

336 replies

Jorginho5 · 03/08/2018 17:07

your thoughts?

I am not surprised. Everything has gone up in price but many people are struggling to either: find a full time job or better job than the one they currently have.

www.thisismoney.co.uk/money/saving/article-4348544/Two-fifths-UK-s-workers-100-savings.html

OP posts:
Neshoma · 04/08/2018 15:28

If we need the car fixing or a new washer for example we put it on the credit card and pay it off at the end of the month, Whats left goes in DHs pensions first, then a bit in his ISA.

frenchfancy · 04/08/2018 16:55

@Ivymaud

I agree, we are in exactly the same situation as you. Savings sitting in a bank do nothing - especially if at the same time you are servicing debt (and I include mortgages) putting spare money back into the business means that it is working for you.

Lepetitpiggy · 04/08/2018 17:33

This is tragic. Smugarses saying how wonderful they are with their savings and their hard work ethic (which obviously, beggin' your pardon mister, us poor people don't have...) and so many in dreadful, not of their own making ,situations being told not to have children. This is exactly what the Tories want - the 'poor' to die out so the elite can rule again. I hate this country

Mixedupmumma83 · 04/08/2018 18:01

Not at all surprising as a single parent with childcare for some of the school holidays costing me over half my months wages it’s impossible for me to save!

Londonerlove · 04/08/2018 18:04

I’m very surprised it’s not higher.

Caribbeanyesplease · 04/08/2018 18:05

This is exactly what the Tories want - the 'poor' to die out so the elite can rule again. I hate this country

This makes no sense. No sense at all.

By its very definition, there would be no elite if there was no poor

ohreallyohreallyoh · 04/08/2018 18:07

It's why benefits changed to a two child maximum as people kept having children that they had no intention of supporting themselves

Could you find me clear cut evidence to support that, please?

Or perhaps it’s the case that the Government and media have spent years using the Daily Mail eat all to convince us that this is the case when in actual fact, the statistics would generally suggest otherwise?

alwaysonmymind · 04/08/2018 18:34

Life throws us curve balls at times and we try to deal with them as best we can.
I was married with 3 kids. I didn't intend to wind up divorced, with PTSD, develop MS and have to battle my children's father to support them more than the £7 (between them) that he pays each week. I am still I need the family home, paying the joint mortgage on my own, as he refuses to do so.
It is all I can do to keep the roof over our heads. I have no savings and recently applied for over 15 jobs, to hear 'no' from 2. I work part-time, term time hours on a zero- hrs contract.
A few years ago I would have been on the other side of this debate but things can change so quickly.
Most people here get the reality of life in th UK in 2018 but some people are so sanctimonious it is unbelievable.

Littlechocola · 04/08/2018 18:36

I have 74pence in my savings account. Doing well.

April241 · 04/08/2018 18:46

I have £2000 in my savings but it’s going towards our wedding. Once that’s over I’ll use the money I save currently to pay off my loan quicker, should have that sorted in about 2 years. Then I’ll save for a mortgage. We both have not bad wages and I would like some savings but there’s just things that need paid for/off before I do. I save for specific things when needed (wedding, mortgage etc) but other than that, nada.

bananafish81 · 04/08/2018 19:06

Savings sitting in a bank do nothing

The general rule of thumb is that the ideal (which clearly is entirely unrealistic for the vast majority of people) is to have the equivalent of min 3 months salary (preferably 6 months) in cash savings. The ideal is also to have insurance like income protection & critical illness in place as well for circumstances like redundancy or serious illness.

Cash savings / cash ISA aren't going to really do much with shit interest rates being lower than the cost of inflation. But they're on paper supposed to be a buffer for unexpected expenses, not to do anything in terms of returns.

To actually get any return on savings you need to put your cash into a stocks and shares ISA - but investments aren't great as emergency buffers, because you can't predict when you'll need to liquidate.

ForalltheSaints · 04/08/2018 19:08

Like the OP I am not surprised. Given half of young people go to university with debt, many others in poverty, and the culture of fast fashion which extends to children, no surprise.

NameChange30 · 04/08/2018 19:21

@Neshoma
“Whats left goes in DHs pensions first, then a bit in his ISA.”

Do you have a pension and ISA?

DarkSuns3t543 · 04/08/2018 19:31

When I was young I was a saver. Now I am older I save some and spend some. I've used savings for emergencies several times. However, I know people that have earnt lots more and live a flashy lifestyle, but nothing to really show for it. I am glad that I started paying into a pension early.

DonutCone · 04/08/2018 19:38

I do think when you have very little it's hard mentally to save. If your day to day life is totally lacking in any treats it becomes depressing and it's hard to sacrifice the magazine or the Costa or the cinema ticket or whatever that small treat you want is as you already don't have the nice house, car or holidays.

It's so much easier when you have nice things already to think 'well actually I probably don't need to spend £4 on that drink as I have a nice coffee machine at home' etc. When you don't have anything nice I've found it is really easy to feel everything really good is so far anyway you can't reach it so there isn't any point giving up your tiny pleasures that are often the only things which make the feast of your life tolerable.

nowifi · 04/08/2018 19:39

I have 100 in my savings, it does worry me as if I lose my job then I would lose my house Sad.

Don't go out, drink or smoke but still have nothing left at the end of each month!

Mummadeeze · 04/08/2018 19:43

No savings here either, apart from my pension which I hope will suffice when I can no longer work. Have never been able to save as I just spend what I earn. As my salary has gone up, I have just started to lead a slightly nicer life. I don’t understand how it is possible to save to be honest. I always feel like I need all the money I earn to live on.

Neshoma · 04/08/2018 19:49

*It's why benefits changed to a two child maximum as people kept having children that they had no intention of supporting themselves

Could you find me clear cut evidence to support that, please? *

It's here: benefits changed to a two child maximum as people kept having children that they had no intention of supporting themselves

AnotherEmma Yes I have a pension and an ISA.

User1478944 · 04/08/2018 19:53

There's an enormous difference between having no savings because you're on low wages and have childcare costs or big expenses versus having no savings (or worse, debt payments other than a mortgage) when you're earning £100k/ year. In the first case, that's hardship and I'd wish people all the best on working through it. In the second case it's pure idiocy and I'd have no sympathy when there are "money issues

I’m one of the posters on 100k with no savings. I don’t need them, I don’t have money issues and certainly don’t need your sympathy thanks. Idiocy would be to pay money into a low interest savings account instead of paying down the mortgage and enjoying the money that we work very hard for to have a nice lifestyle for our family.

I agree there’s a big difference between our situation and families on low incomes living hand to mouth. (I expect they couldn’t give a shit about your sympathy either) They are totally different situations and not really comparable but would both contribute to the 2/5 statistic. So the statistic is quite meaningless.

ohreallyohreallyoh · 04/08/2018 20:31

I’m one of the posters on 100k with no savings. I don’t need them

Erm, yes you do. Maybe not today but you have no idea what the future holds. How will you maintain your lifestyle if you are unable to work?

huggybear · 04/08/2018 20:36

User - what happens if you have an emergency that costs a couple of thousand? I'm sure you could just reallocate that money from your current account, but why?! It's frankly an insult to those scraping by and making an effort to save.

blinkineckmum · 04/08/2018 20:55

5 years ago I was pg with dc1 and dh and I had just bought a 1st house so very little savings. Since then we have paid off some mortgage, renovated and sold the house, and had 2 more kids.
I am currently on mat leave with dc3. We have accrued a comfortable amount of savings and released enough equity to move to a bigger house.
We are not high earners. We have no family near so pay for all our childcare.
I know we have been extremely fortunate to buy and sell when we have, to be able to buy in the 1st place, and to both have jobs and each other. I know our situation could easily change, so I try not to spend what I don't have. I know not everyone can do that.
I understand that the UK is expensive, especially for property and education, and wealth is very unfairly distrubuted.
But I also wonder if many people earning a similar amount to us live beyond their means.

bananafish81 · 04/08/2018 21:11

I’m one of the posters on 100k with no savings. I don’t need them

If you had a major unexpected expense (eg new roof, not covered by insurance), or period of illness not covered by critical illness, what would you do?

Ivymaud · 04/08/2018 21:17

This reply has been deleted

Message withdrawn at poster's request.

Caribbeanyesplease · 04/08/2018 21:28

Those on £100k and saying they don’t have savings.

It’s not that much! Prior to divorce £150k family income with £70k bonus.

We lived in a two bed flat (admittedly very expensive area!, one 8 year old car, no private schooling.
BUT a substantial pot of savings. Why? Because my ex, who was earning the money, was working in finance (as the majority of high earners do) and very very interested and savvy with investments. It wasn’t so much about having a rainy day fund, because at this level of income you can meet most realistic “emergency” costs, instead it is more about making the money you earn “work” and earning as much as you possibly can from it from astute investments and saving vehicles