To think it’s not that unusual for people to have no money in their bank account

[Iftheclouds]

At the end of the month? I know ideally it’s good to have savings but would imagine it’s not that unusual to have any?

TartanDM's. What on earth is squeaky bum time?

I'd say it's fairly common. Debt is a cumulative thing: interest payments, poor credit rating meaning worse rates, cheaper products need replacing & repairing more often etc. If you start out on a not great salary & no savings then it's only going to continue or get worse over time.

I don’t think it’s that unusual - I have a credit card and a student current account with HSBC that I don’t use anymore; I bank with Santander and have my salary paid into this account. The balance in my old Hsbc account is £0-£20 on any given occasion but whenever I ring Hsbc customer services, they don’t think anything of it, so can’t be that unusual for them!

I don't have money in my account but if I need something I can take it out of savings or buy it on credit so I don't think that counts.

Being potless is completely different, I've only been in that situation once for about half a year until I found work.

I don't really know anyone who has no money but the success of payday loan companies show there must be a few.

To be honest, I always thought it was unusual, as I was always the kind of person with a savings account, and premium bonds, and other little pots here and there.

Since my business going to shit thanks to covid I'm living hand to mouth, and praying that things perk up soon - else I'm screwed.

So I fully understand now everyone who has ever been in this situation, and am sorry if I ever judged or accused of poor money management.

@percheron67

TartanDM's. What on earth is squeaky bum time?

To me that means spend no money (cos there isn't any) and make do with whatever is in the freezer and cupboards. That's where I am until payday this month. I do have a bit of savings but not much.

I have 92c in my current account right now!!
But...my wages go in at midnight. This account is only for bills and rent though. I have money in a separate savings account and an account with a different bank that I call my spends.

Never had an overdraft but I feel terrible for people who have to live paycheck to paycheck .

I zero balance my account every month but treat savings as a bill and pay myself first. So I technically look broke on my current account, but not really in re.to savings. The night before pay day i transfer any remaining amount to other saving pots etc if I remember. Sometimes i leave it there if its.only a.few £ left and cant be bothered logging in. So my current account hovers low for the last week or so. I also transfer bill money to a separate account on payday so i don't spend it then transfer back when due or taken out. So balance can be low until I pay myself back.

I’ve got just under £20 in my current account but I get my UC payment tomorrow.

Then payday is a week and a half after that.

I have a savings account with about £400 in it and an untouchable and sacred stash of £1000 in cash. The savings account is for Christmas and the grand in cash is for dire emergencies.

It wasn’t always like this. I hope I can make things better but it’s hard to know how. Especially while the world generally seems uncertain.

I don’t have any debt whatsoever so that’s something.

I get paid in 10 days and I have £0 in my account right now- however I have a few thousand in easy-access savings, and due to being (overly, probably) careful throughout the pandemic we're only buying what goes out on payday + food anyway.

Some (many?) people are just financially inept. No matter what they were earning they would have spent it (or more)by the end of the month. It's as though money is literally burning a hole in their pocket and they have to spend it. They see money in their account and go 'ooh I have £100 what can i buy now?'. Woo payday! I can go daft and spend all this money. Oh I have none left now.
I know people that regardless of whether they were earning £16k or well over £60k would always plead poverty prior to pay day. They will always spend all that they have.
Many see an overdraft allowance as just an extension of their money but don't see that by using it every month and counting it as just part of their pot of money that it is no longer available should an emergency arise.

Agree with @TheNinny The easiest way to save is to to carve off your savings chunk on pay day and stash it away, not wait till the end of the month and see what you haven't manage to spend yet.

Icecreamandcandtfloss, a lot of families are living paycheck to paycheck not because they overspend but because their wages barely cover the essentials. I think there are thousands, if not a few million people relying on universal credit to top their wages up so that they can pay the bills and there are going to be thousands more as the pandemic financial crisis properly hits. Most have absolutely nothing longer left over to put in savings.

I’ve been 2.5k deep in my overdraft for 10 years. I’m not ever paying that off on my wages. They just about cover my rent and council tax!!

I don't think it's unusual and it's only going to get worse as the financial crisis of the pandemic properly hits.

It was said in the UK a few years ago that most people are only three pay packets away from being homeless. I get the feeling that it's not even that far away for a lot of people now

I remember my mum and dad scrimping in the week before payday but when things got a bit better my Dad instilled into me the concept of budgeting from a very early age.

Thankfully I'm not in that position now and have savings to tide me over, however I still have family members who are in overdraft/ hand to mouth situations.

Weve had many months where the last few days there is no money and have had to make do or borrow from family. Now have slightly better paid job ive managed to get a small amount of savings to cushion if we have more bad months

And I am extremely financially responsible, I have a colour coded budget sheet stretching back ten years. Every single penny is logged. I have no hobbies or habits. I just don’t earn enough. Without tax credits we would be starving.

@blue25

It’s unusual for me, but no idea about other people. Surely most people have some sort of cushion?

How do, @blue25?

Interested in what you the cushion
that most people have looks like / is come by?

Agreed, I am always trying to balance everything to not end up in my overdraft. My colleagues don’t even realise when they’re paid. When I was shocked they made a comment like “it’s not exactly like I’m living on the poverty line” ugh

People spend to their means. Whilst many don’t have a choice. Lots do, but they’d rather spend everything than save.
Maybe after this year people will realise that they should have savings and not expect others to bail them out all the time. I have plenty of friends who always have the latest clothes, nice cars etc ... yet they complained they couldn’t live on furlough. They earnt enough money pre Covid to save. But didn’t. I personally feel begrudged that I will end up paying for them in one way or another via my taxes because they didn’t have the sense to save a little. (Just to reiterate, I know many people don’t have the income to save, this post isn’t about them. It’s about those that can, but don’t).

I've always had between 50-100 left (at least). Even when I was on 4.95 an hour years ago. I am not from UK and always kept money on a side in case I had to unexpectedly travel either because of my issues or death in a family etc. If not used, it went into savings and did the same next month.

Ended last month with £1.44 in my account, not unusual at all

We never have anything left over by the time it comes to the end of term, plus the end of the month before I get my next instalment from Student Finance. I don't think I have ever had any great sum left over before I am due to get paid, used to live in our overdraft a week after getting paid when I was with my ex so I suppose anything left is better than that.

I agree with user1471447863.

I know it's a touchy subject and there are those who are in genuinely difficult situations beyond their control, but for many it's down to poor choices, poor impulse control, and misplaced priorities.

My parents raised three children on a single income. It wasn't a high income, either. They budgeted carefully and made saving a priority. They still live that way. Though now the strict budgeting isn't necessary, frugality is just a way of life. Their version of a splurge wouldn't even register as a treat for many. Never owned a new car, always made do, bought second-hand, repaired, did as much as possible on their own, etc.

Compared to them, I'm probably a bit more of a "splurger", in some ways, but their example has left a strong impression that will always affect how I view money, spending, and savings. I can only imagine that the same is true for people who grew up witnessing a different way of dealing with money. It can be a challenge to break whatever cycle you're born into, and if you fall into bad luck, all the good habits in the world might not be enough to keep you afloat.

Last year we got comfortable for the first time in our married/adult lives. It's now gone pear shaped and then some.....and we noth had jobs that were always seen as 'safe'.