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?

We both work but are living paycheck to paycheck for various reasons. We try and save a little each month but we always end up dipping into it eventually.

This month is particularly hard. It is a five week pay month and some things won't be getting paid because they're 4-weekly payments and came out just after I got paid. Other things have come up (I fell out with my energy company and switched, but timed it wrong so we paid extra, and I thought our tax credit overpayment was cleared this month but its next month, so £100 less than I thought we had). But we have food to last us till next week, a house over our heads, heating and electricity.

I lived in the overdraft and on loans when I was with my Ex. He left me with all the debts. Over the last ten years I’ve been a single parent on min wage but have cleared all debts and got a cushion of two months outgoings in the bank. For me having money and security is far more important than having ‘stuff’. I’m also aware that when tax credits end for my youngest children I need to be earning far more so have been training. I never want to be in situation of scrambling under sofa cushions for pennies to buy food again.

My current account is always empty my end of the month but that’s as I calculate what I can spend per week between pay day

My other accounts have a lot more in them

I find it astonishing that they don’t teach how to look after your finances at school? I think I had a 30 min lesson in school? That was it although I was always learning pointless maths. You would think that would be better than learning some of the stuff that children normally do? 🤷🏻‍♀️

It's called poverty or living from hand to mouth and millions have to live like that in this country even when in full time work.

When I was with my ex we spent many years living from week to week, pay cheque to pay cheque, struggling on the weeks when a big monthly bill was due. When we split up I absolutely prioritised paying off debts (I was fortunate to get a few £1000 from the sale of the marital home) and building up a buffer of savings. I continued to live frugally until I’d got that cushion, as I never again wanted to be in a position where I couldn’t afford to feed my kids. I think for us it was a mixture of poor choices, and also low paying jobs. I also know I’m incredibly lucky to have got myself out of that and to be in a better place now.

@caughtalightsneeze

I used to work in a bank and my job involved monitoring thousands of accounts. It's very very common to have no money at the end of the month, but for various reasons. Some people live on a knife edge and run out of money a few days before the next income hits their account. Some people have no discipline with money and have blown their entire salary in TopShop by half way through the month. And some people budget carefully and transfer money out to savings or investments at the start of the month leaving only the bare minimum in the account.

But combining all those things, that covers an awful lot of people.

I can see that is true, and someone like me who is very fortunate to have bugger all in my current account as it's all accounted for, but two years salary in savings is in a very different position to someone with no savings. But you wouldn't tell it from end of month current account balance

@Teddybear27

I find it astonishing that they don’t teach how to look after your finances at school? I think I had a 30 min lesson in school? That was it although I was always learning pointless maths. You would think that would be better than learning some of the stuff that children normally do? 🤷🏻‍♀️

I agree. Make it part of the maths curriculum so it’s not an extra lesson or subject for teachers. Many don’t know ho to budget or don’t even think about the costs before making decisions.

Yes, teach people to simply go and get a higher paying job, or to not be disabled, or to not have twats run off abandoning children, or to not be born in countries with disgusting wealth inequality and living costs, or everybody to have 2 jobs, what could possibly go wrong with that?

I cannot wait for the day when I have money left at the end of the month and not month left at the end of the money

Dont have overdraft. If your living above your means its time for a reassess of your finances or overtime every month

I do think there is a place for schools (ideally parents, but many don’t have the knowledge themselves) teaching budgeting. So many people have no idea of basic things like putting together a spreadsheet of money in and out, or how to shop around, or figure out the best deal. Also cooking.. how to make your money stretch and feed yourself healthily for less. How mortgages, loans, interest payments work. Yes life happens; I sure didn’t expect to be a disabled single parent! But there’s also a place for personal fiscal responsibility too.

My parents were really secretive about money, I was told off if I asked how much they earned etc. I make sure I show my DC my internet banking, tell them which bills needs to be paid, when I transfer money to savings etc. How else will they learn?

I've been extremely fortunate thus far that I have money left at the end of the month but I definitely grew up in a family of too much month at the end of the money not through being too luxurious fancy cars and big holidays just life being too expensive and earnings too low its an horrible effect on mental health of my parents sadly. I know I'm fortunate not many unfortunate events could see things very very differently.

YNBU skint until DP gets paid on 30th and I get money whenever (awaiting student finance 😢). We have £30 until then. We have no savings. Sounds weird but I'm glad to see this post as was thinking everyone on mums net had bought their houses all paid off at 19 and had massive savings. Sh*te isn't it?

Yes it certainly is. I’m hoping my situation will improve in a few years though.

Not unusual at all.

These days, it would be extreme unusual for me to have no money at the end of the month and I also have savings.

However, when I was a student and in my first year of working, it was most certainly not unusual. I only ever had my student loan and what I earned in holidays, no help from parents etc. It did teach me to budget carefully though!

Once I met DH and was earning better, I started saving. I think being poor as a young adult stayed with me in some ways and I am still more careful than I need to be with money.

No, it’s very common

@Jeeperscreepers69

Dont have overdraft. If your living above your means its time for a reassess of your finances or overtime every month

That very naïve. Many people in modern Britain are working full time and not overspending. They just have high housing, transport and childcare costs. Pretending that the only people struggling are people who don’t know how to budget may make you feel better but it’s not true.

A lot of people are low paid. For example, I'm a care worker and don't get paid much more than minimum wage. Some carers only get minimum. The cost of living is going up, I've noticed food prices creeping up, petrol, public transport...while wages are remaining stagnant.
I wouldn't say we are reckless with money, but we do struggle some months, especially when it's five weeks between pay days. I'm sure I'm not the only one in the same boat here.
A lot of people who have had to use food banks are "working poor".
Unexpected bills get in the way (car maintenence, for example, or washing machine broken down etc.), and no matter how much you budget, life sometimes gets in the way.
My overdraft is from a time when my outgoings were just that little bit higher than my incomings. A few pounds here and there and it soon adds up. I've never been able to claw out of it.

I would love to have a higher paid job, have extra money for holidays and even a deposit on a house, but right now, that's just a dream, and one that seems ever so far away.

@Jeeperscreepers69

Dont have overdraft. If your living above your means its time for a reassess of your finances or overtime every month

Not everyone can afford not to have a overdraft.

Get another job? Who's going to pay for the childcare? Especially if that second job is at the weekend or in the evening? Not everyone has a partner or family to help them out.

Not everyone can afford to cut back. Sometimes just paying rent, buying food and paying the bills puts you in the red.

Must be nice to be so privileged as to not see that, though.

@SciFiScream

Please look into your local credit union. If you could afford to save a small amount of money you'll be able to build a relationship with an org that should give you access to cheaper credit.

www.creditunions.co.uk

I 100% agree with this.

My local credit union doesn't require you to save before you can take out a loan. The maximum 1st time loan is £250 which is enough to replace a washing machine, you have to save £1 a week while you pay off that loan and even that adds up.

A lot of people saved or got loans around Christmas time. People could save as little as £1 a week and even that £50 over a year makes a difference.

I don’t think it’s unusual at all. In many cases people have no choice as they just don’t earn enough not to have to spend all their money. In other cases people just spend their money while they have it. I’m always a bit surprised how many of my colleagues at work (who all earn more than me as I’m the most junior member of my team at the moment) have no money left at end of the month and don’t have any savings. In their case it’s really a choice as they buy lots of expensive things. I do think a large number of people don’t understand how to set up a budget and track spending. It wouldn’t help those that just have very low incomes but it would help others. I’m not generally a saver but I’ve always put 2.5% of my income into a work share scheme and it’s up to about £70k now, which is a crazy amount for something I’ve never even noticed not having. That’s just luck really though as if I’d worked for a company that didn’t happen to offer that I’d never in a million years have saved that much in cash.