To ask if saving is a lost habit

[OneRingToRuleThemAll]

Several times recently I've seen posts from people who 'can't save on a high income'.

Is saving up a lost habit? I'm sure back in my parents and grandparents generations saving was just something that everyone did.

Don't buy what you can't afford and save up to spend later.

I'm the sole earner on an average salary (mid £20k's) and I save as if it was any other bill. It goes out on payday along with the mortgage, gas and council tax.

It's a huge generalization that noone saves. I put 6% of my salary into my pension and save £400 a month. I have done all the way through my 20s. The only debt I have is my mortgage, the car is paid for outright and nothing is done on credit (I will get a new mobile on contract, but it won't be the latest one, I'm not willing to spend more than £35 a month). I like to have at least 5k sat in my ISA in case of emergencies.

My husband has done exactly the same.

But there is definitely an increase in the availability of credit so people want flashy cars and lots of holidays rather than saving money.

@sewinginscotland I do think there is an inbetween. I have savings and live within our means but easy credit does mean that I don't need as much savings for an emergency. As long as there is a plan of how much I need to pay to pay it off and I can afford it I don't see that as bad

Some people manage to save even on low incomes.
I don't level of income always has a lot to do with ability to save.
Self-discipline & managing risks can come into it, very often.

Icecreamandcandyfloss
Your last paragraph is twaddle. The benefit system is strict and makes people jump through hoops.

You either know that or just done give a fuck.

Don't not done.

Some people save and some do not. Whatever income level, there are always people who spend to their last penny.
There are always people who save.

Has always been so and will always be so.

Laughing at the poster saying the benefit system doesn't help. Yes Universal Credit is making it so appealing not to work 😂🤦‍♀️

Anyway I think it's like it's always been, those with extra income can save. Those with a low income cant afford to save, then of course you have the reckless people. But I would imagine with all the pay day loans/credit/catalogues you can get within a day now doesn't encourage some people to save.

@redappleandaquamarinebow1987 If you have a plan to repay credit and you're comfortable with that, that's fine. I just don't like committing to pay things further down the line because you don't know what's ahead.

I put £350 away every month. Some people save. Some don't.

We have only just started saving tbh and we should have started years ago. I am kicking myself that we didn't.

If we wanted anything, we have always got 0% credit cards and set up payments to pay it back within the promo period.

We bought a car on a 3 year 0% credit card and will have it paid off well before then.

But yeah, should have been saving instead.

spne people actually oversave at the cost of having fun whilst they are still healthy enough to do enjoy it

@ADUTT7 I think a sensible in between is best. Yes make sure there is funds in case of an emergency but also don't deny yourself some luxuries as long as you can afford them

I think low interest on savings, coupled with interest free credit makes saving less likely and sometimes a bit bonkers. We save for a rainy day fund but i wouldnt save to buy a sofa or a bed.

I think saving in the old fashioned sense is a bit pointless given the current interest rates. Saving up for a specific purpose maybe but if you are buying an asset like a house, you could well be better borrowing more and saving yourself rent and potentially benefitting from a rise in value. Equally the pp who said they couldn’t save as they were increasing their pension contributions- paying more into a pension is a better way to save for retirement then sticking it in a savings account. Don’t spend money on fripperies that you cant afford, yes. But having lots in a savings account is not necessarily the best way forward financially.

My mother saved small amounts religiously but opted out of her workplace pension. She now has saved quite a bit but will go through it quickly as she has only a state pension.

Take into account the interest rates offered by a lot of savings too... It's less attractive than it used to be.

I don’t understand this mindset. I don’t save so that I can accrue interest. I couldn’t care less about interest. I save so that I have my own money there for emergencies and big expenses I might want to work towards. Whether I earn 0.01% interest, 0% or 5% is immaterial to me and doesn’t factor at all into my desire to save.

I have never been the best at saving!! But now we have no mortgage left I’m really trying hard to save!! both my husband and I are going to try and put £7000 each away in a ISA each year for the next eight years fingers crossed we will manage it. I have really cutback on cloths and makeup and I’m trying not to buy anything for the house. We are still going on holidays but booking last minute to get good deals and are trying to only eat out once a week I’m not cutting out theatre or cinema or concerts. I’m trying to be a bit more savvy with my money. Really cut back on Christmas no more stocking fillers and tatt! I really have stopped going shopping in town only shop at Lidl’s and Aldi for food and stick to the shopping list. I really don’t want to think of the amount of money I have flittered away over the years on stuff!!

I’ve been saving my entire life and needed nearly every penny of it for a) a deposit b) to make the tiny flat I bought liveable

I earn a good salary but y’know London!

I’m now trying desperately to start saving again but my very old car has about six months before it will permanently break down and my laptop that I need for study died last month.

I refuse to buy the car on credit so there goes my emergency savings again!

CrystalShark - well the lack of interest means that if you are saving for a thing and inflation makes that thing more expensive in 2 years time because inlations is higher than interest, you can now buy less of the thing than if you bought it 2 years previous on interest free credit and paid a set amount each month.
It also means you might be able to make your money work harder in other ways such as pensions or paying of a mortgage quicker.
I like savings and have some for emergencies but the money just sits there loosing value

I save:

Money into pension - 10% of salary
Money into long term savings - whatever is left at end of month can be anything between £200 and £500
Money into short term rainy day money - I always like to keep at least £1K aside for unexpected bills
Money into long term savings for both children - £400 between them

I have been saving since I was 8 years old. Both my children are encouraged to save. They are 7 and 11. My eldest saved up and bought himself and xbox.

I agree op, credit is so widely available, envy seeing others life styles pushing people to want more etc.

A couple of years ago I brought those closed tins and put 2 pound a week in. And 10 a month.
Sounds silly but that spurred dh on to drive our bills down as much as possible. We also applied for marriage allowance which was about 22 extra a month... We had not been able to afford to go away so suddenly, to have few hundred quid at end of year encouraged us it could be done.
We had two nights away in cheap b and b by sea, luckily had good weather and it felt like a week. We had some ££ left and kept saving so gradually accumulated.

Then got split into different funds.. Tiny... But a start.

@crosser62

I go with the principal of having a years salary in case the worst should happen. But it’s what Martin Lewis says!!

No it isn't. Martin Lewis says six months of bills, not one year of salary. It won't take you a year to find a new job!

www.bbc.co.uk/news/amp/magazine-35801951

Food is our biggest issue. I could save 100 if I could get my head round making more.

On the back of this thread I set up a £100 standing order into my savings account which currently holds 37p so thanks.

I think it’s just hard for a lot of people to save these days. For people on mediocre wages (which presumably is the majority) after childcare, travel to work and bills there’s not much left so you think fuck it I want to go out for dinner, I want a holiday and I don’t think anyone should be judged for that. Yes it means it’s easier to get into a pickle if something crops up but surely you need to enjoy life too.

I also understand there’s loads of people who just can’t/don’t want to too.

I've always been a saver (even on a low wage)
I pay into work pension
I pay into some personal savings
I pay my bills

One of my previous employers had a monthly share save, not everyone contributed. I sold my shares & made a good profit

I appreciate not everyone earns enough to save

As an older person, I save some & spend some. I have a balance of save & spend

As PP said, it’s a mindset.
I was given a small monthly allowance since I was 7 and my family was baffled that I kept stashing it all away.

I think my grandmother was a big influence on my frugality - she lived through regional and world wars, and was the runt of the family as a child (with 7 older brothers and field work there wasn’t much food for the youngest girl). Those stories stick with you for life.
By contrast, my sister fritters everything away. She was raised with the same stories but her takeaway was ‘YOLO’