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?

I volunteered at a credit union for a while and did some debt work with another organisation and a lot of people live hand to mouth, most often because of a low income.

I lived like that myself for a while when I suddenly became a single parent on benefits. It was really stressful and something like a washing machine breaking down was a major ordeal.

Thankfully I am in a better place now. Some months are very tight but I have managed to squirrel away some savings and I know I can cover my bills and put food in our bellies without me eating chickpea curry every day because it is so cheap.

We get to the end of our money each month, but we have no debt other than mortgage, all outgoings covered, food in the fridge and more than enough of clothes, toys, craft stuff to keep us going. We don’t go for expensive family days out but I do get my hair done every other month and the children have well made coats and shoes. We save a set amount for each child each month and a very small amount, less than £50, in our own savings account, if we can.
I consider us very, very fortunate that our cloth fits what we need it to, but we also don’t buy what we can’t afford.

I regularly have nothing. It's scary as a single parent but I survive on disability benefits and so I have no choice. I'm very familiar with relying on the £1 or £2 loyalty balance on my Co-op membership card or Nectar card! Just yesterday I was trying to find a single lollipop for under 41p my daughter...

@Nsky

I’m very lucky, that despite low paid job , I have no housing costs, divorce settled that for me. Haven’t had an overdraft in years, and have a good amount of savings. Must be scary if things break down, go wrong, not to be able to afford to replace or fix. Consider myself very lucky

Not the most helpful of comments, I must say

I imagine a large proportion of the population live week to week or month to month. It's always been the way for me as I've never been a high earner.

Someone further up the thread thought that surely most people would have some sort of cushion. I certainly never did as I just didn't earn enough to be able to put money away each month. I think people who can afford to save are extremely fortunate.

Does no savings mean just money? So if you have nothing in your bank account but you have a house worth 300k say and only 200k left on your mortgage, does that count as you having 100k?

@formerbabe

This thread has made me feel better. IRL, I seem to know no one who is struggling. When the school went back after lockdown, I was amazed how many of the parents had got new cars...

If they're anything like me (or have kids with additional needs) then they could well be Motability cars

There are clearly lots of people who live payday to payday and are always in their overdraft. Some of those people simply do not earn enough to cover more then the very bare minimum needed to get through the month. Some of them will be people for whom money burns a hole in their pocket. The
I’m lucky to have a very comfortable income now, but I have always been a pathological saver. Even as a student on a student loan and minimum wage summer jobs, I never went into an overdraft or finished a term without at least a small cushion of money. As a child of a gambling addict, I have some very vivid memories of there being no money left long before the end of the month and would find it really deeply uncomfortable to finish a month with no money.
Interestingly, my sisters are totally the opposite. Although I’m a higher earner than either of them, they both earn respectable salaries (above the median) and one still lives with my parents rent-free. Neither of them has any savings and their outgoings grow to match every increase on salary that they get. We are all childless and in our early-mid thirties with above average salaries. If you are a parent of three children on minimum wage, no matter what mindset you have, there’s not going to be a cushion left at the end of the month. I think it’s a combination of attitude to saving/spending and circumstances.

The last few days of a month I've usually got less than £10 in my account. High rent costs, expensive debt repayment from mistakes made years ago. No savings. My friends don't seem to understand when I say, no, I'm out of money I mean - out. Not 'I try not to go below £500 in my current account so I shouldn't splash out', just out of money.

I'm sure it's fairly normal for huge chunk of the population. We've been there and actually going further and further into our overdraft every month. It's unbelievably stressful waiting for the next expensive thing that needs to be paid for and not seeing any financial growth.

It was a long slog out and we keep only £50 in our current account each month, the rest is in easy access savings.

Well it's not unusual.

The average Brit doesn't have a lot.

www.finder.com/uk/saving-statistics

I literally am skint before payday. Thankfully not in my overdraft atm but always down to the last £30.

I used to be the same until the last 2 or 3 years when I have made a real effort to save. I'm saving up to move house, already have enough for new sofas, washer, dishwasher, carpets & decorating, just keep on putting as much away as I can every month. I'm in social housing so I need every penny for when I find somewhere.

I don't think it's unusual at all. I used to work in a call centre helping people that couldn't pay their mortgages. We'd take 25-30 calls a day and in over two years, I only spoke to a handful of people more than once. A lot of people are on a knife edge.

I have little money in my current account at the end of the month as I only transfer my set "spending" amount for that month over on payday.
Savings and bills have already been accounted for.

@Planty13

I literally am skint before payday. Thankfully not in my overdraft atm but always down to the last £30.

So you finish every month with the same £30 in your account? So you every month spend (within a few £) every penny that comes in that month? Or subconsciously aim for that almost all gone but safe fallback £30? You've just matched your outgoings to your income. Why not take £20 of that £30 and stick it in a savings account and forget about it. I'm sure the following month you will once again target your outgoings to aim for your safe £30 at the end of the month.

A lot of people seem to be coming up with excuses as to why they couldn't possibly save anything. If you have ever had a pay rise, you managed (and managed will mean different things to different people) prior to that, so what you get extra you should be able to save something out of. Because to be honest, you were never guaranteed that rise and had you not got it then you'd jolly well just have had to manage.

According to this 10% have no savings, and a third have savings of

To live financially like that due to a very low income is a really shitty feeling. We lived like that for a very long time, and the stress lack of money brings can be a killer.

The fear at the supermarket checkout of miscalculating the total you’ve been totting up on your way round is horrid. The silent prayer of “please don’t decline my card” rings through your head on repeat.

It sucks. Empathise with anyone in this situation.

we have savings Now because DH is a thrifty budgeter but before I met him I was always down to my overdraft limit. Always buying clothes, getting cabs, smoking - just frittering it away. Now we set maximum limits on Xmas presents (£60 each for us £15 for v close family) and take packed lunches when we go out. It sounds dull but it’s quite satisfying really. If we both lost our jobs we have have enough to last us for 4 months. Not a huge amount of time but it helps me sleep at night.
For PP worried about boiler cost - isn’t there a new government scheme for that? Not sure if it would help you.

Really not unusual at all.
I usually have a little bit left, like £50 left in my overdraft for emergencies. I'm on maternity leave atm, and have £1 in my overdraft. I got paid last week. It's not about trying to manage money, it the cost of living getting higher and minimum wage not reflecting that, same as statutory benefits, and benefits in general. As it stands, I can't afford to go back to the job I love, but I can't afford to not work either. It's a catch 22, same with a lot of working families.

We get to payday with -1200 in just our joint account, we live paycheck to pay check, no savings, everyday is a struggle, made worse now we have both tested positive for covid 19, my wife will get full pay, and im SSP, no idea how we are gonna pay our rent next month

*The fear at the supermarket checkout of miscalculating the total you’ve been totting up on your way round is horrid.

Agreed! I now use the ASDA scan and go app on my phone when I’m there and it’s brilliant for keeping track of the bill. (I shop in Lidl mostly but get some things in ASDA)

A week til payday here and £150 overdrawn. Quite normal but wish it wasn't.