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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

244 replies

Iftheclouds · 20/10/2020 17:31

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?

OP posts:
PeterWeg · 21/10/2020 20:46

Something like 50% of people in the UK could not raise £400 in an emergency. In the USA its significantly worse

PeterWeg · 21/10/2020 20:50

" but I’ve always put 2.5% of my income into a work share scheme and it’s up to about £70k now"
Did you Earn 100k for 28 years? How is that possible?

chunkyrun · 21/10/2020 20:52

This was me up until 6months ago. Such a stressful way to live. Any emergencies on a credit card. Had an increase in earnings thankfully and finally been able to save an emergency fund. Now throwing everything I can at debt. Nobody chooses to live that way. Can't tell you how many sleepless nights I had stressing over such small amounts of money.

HomeEdRocks18 · 21/10/2020 20:53

We are over our overdraft until payday on Friday. No savings

MadameMinimes · 21/10/2020 21:08

@PeterWeg

" but I’ve always put 2.5% of my income into a work share scheme and it’s up to about £70k now" Did you Earn 100k for 28 years? How is that possible?
Presumably the shares have increased in value over the years the poster has been investing.
whatkatydid2013 · 21/10/2020 21:09

" but I’ve always put 2.5% of my income into a work share scheme and it’s up to about £70k now"
Did you Earn 100k for 28 years? How is that possible?

Not at all. I started on 15.5k and I earned under 30k till about 5 years ago. Basically the share price rose a lot over the past 17 years and if I put the money in it then it was tax/ni free and work matched my contributions. It seemed a no brainer to sign up for it and as I’ve never ever had that money I’ve never noticed it’s absence. It’s just dumb luck though as not like I even knew the scheme existed when I applied for the job

CorianderLord · 21/10/2020 21:14

I've been charged an overdraft fee many times, thankfully I now have savings but only in the last year since I started a better job

Gillian1980 · 21/10/2020 21:15

It’s not unusual.

We are usually in our overdrafts by pay day. Can’t wait until the days when extortionate nursery fees are behind us - we can start saving a bit then.

VK456 · 21/10/2020 21:18

No, it’s not unusual. It’s only since I’ve got older that I have money left over. It really was hand to mouth when I was first married. I will never forget.

Teenagekicks21 · 21/10/2020 21:18

This year for the 1st time since my son was born 16 yrs ago I have actually been able to put some money into savings each month. Prior to this year I would but down to zero pennies in the bank by the time payday arrived.

murakamilove · 21/10/2020 21:24

I think it’s fairly normal. Everyone would like to have a cushion, but that’s often an aspiration in this day and age.

Myglorioushairdo · 21/10/2020 21:30

I think it's a bit unusual to have nothing left at the end of the month if you are a person with no disability or exceptionally difficult circumstances. To end up with nothing at the end of the month on a permanent basis is something I would call bad money management.
I have been on very low incomes and I currently am at the moment, but there has never been a time when I haven't put at least £10 from my salary on an isa. During the covid spring we were totally without an income for a number of months and had to use our savings, but as soon as we started earning something again, we put a little bit aside ever month.
I think it comes down to need and want. What do you Need to run your household is different from what kind of lifestyle you Want.
I have never had an overdraft, car loan, store credits, or a credit card and come from a relatively poor family. There have been tough times, but I have always lived within my means. If you can't afford it, don't buy it is my motto..

grapewine · 21/10/2020 21:34

@jeffsar4

Oh and *@grapewine* he is just a total bastard 😢
@jeffsar4 He definitely sounds it. I'm sorry you're dealing with this.
Lovely1a2b3c · 21/10/2020 21:35

@user1471565182

currently 12p in my account until the 24th. luvyn lyfeeeexxxx
Oh God, you poor thing. Hope you have an overdraft.

I'm in tons of debt so the £100 in mine should really go on those!

Coolieloach · 21/10/2020 21:37

I think it is unusual to have no money left at the end of the month.

ShrimpieFlintshire · 21/10/2020 21:50

I think it’s fairly normal. DH and I are always overdrawn are the end of the month, plus we have debts that we throw any spare cash at. It’s always been like that. We’ve both had decent jobs for years so we probably “look” like we should be comfortable, but kids and mat leave and nursery bills etc just stretch us too far.

SchrodingersImmigrant · 21/10/2020 22:32

@Myglorioushairdo

I think it's a bit unusual to have nothing left at the end of the month if you are a person with no disability or exceptionally difficult circumstances. To end up with nothing at the end of the month on a permanent basis is something I would call bad money management. I have been on very low incomes and I currently am at the moment, but there has never been a time when I haven't put at least £10 from my salary on an isa. During the covid spring we were totally without an income for a number of months and had to use our savings, but as soon as we started earning something again, we put a little bit aside ever month. I think it comes down to need and want. What do you Need to run your household is different from what kind of lifestyle you Want. I have never had an overdraft, car loan, store credits, or a credit card and come from a relatively poor family. There have been tough times, but I have always lived within my means. If you can't afford it, don't buy it is my motto..
I agree. Though I do have credit card (didn't for quite a while after arriving to UK) but for the benefits of it. It's paid off every month.
SallyB392 · 21/10/2020 23:45

I can't manage my money, so all my money I s paid direct to my husband's account, he then transfers £120 every month into my personal account. I rarely remember to take my purse so I walk around like the queen, with my husband's wallet getting lighter and lighter. I've even mastered the art of forgetting my pin number for my card, so I get him to pay for everything on line too.

I still don't often have more than £10 at the end of the month. But none of the worry. Win win!

Janetizzy30 · 22/10/2020 07:49

This last month has been cath up month as the month before we spent a lot on decorating and some other stuff for my husbands hobby. As he paid for some other people and is getting paid back it cost more than expected. Pay day friday though so reset on normality. Pay bills get food then only stuff we need

userxx · 22/10/2020 08:14

@SallyB392 Really? Do you think that if money management was taught in schools you'd be better equipped? You might want to look at using Apple Pay, no need for carrying debit cards around.

Devora13 · 22/10/2020 08:15

I can see there are comments here from those who have never 'walked in the shoes' of those living in poverty.
It's more often than not, not about poor choices, but unfortunate circumstances.
It would be lovely to think people could be open minded and compassionate.

Jemzy30 · 22/10/2020 08:44

Its an awful position to be in, I currently have 67p in the bank, my husband lost his job at the beginning of Covid, we don’t have an over draft, I’ve had to miss important hospital appointments for my disabled daughter because I literally can’t afford to get to the appointments, borrowing off family and friends for food and electric! It’s embarrassing to be in such financial difficulties and it really tests my mental health! Confused

oncloudnine · 22/10/2020 08:47

It's common and there are different reasons for it. For some it will be because they're on a low income which just about covers the bills.
For others it's because they live beyond their means. My boss is like this. Earns way over the average UK salary, in a relatively cheap area of the country, but is always in his overdraft. He had the cheek to say they're "paying me too much" when I went on a nice holiday last year (that I had saved up for ages for), while he's apparently "on the breadline"...despite knowing fine well I earn a lot less than him.
In fact he's over-mortgaged because of buying an overpriced house in the poshest neighbourhood in town and his kids go to one of the more expensive nurseries...and he was already in debt before making these choices (I know it's none of my business but it's hard not to know these things as he tells us all about it). He also buys expensive lunches every day.
I earn about £10K less than him but don't even have an overdraft and have savings...I realise I'm fortunate but I've also made different choices. I live in a more modest area and have a small mortgage, drive a 10 year old car that I kept after paying it off, my child goes to a mid-priced nursery, I have a 5 year old phone, bring my own lunch every day and buy everything second hand. But lots of people look down on that lifestyle and would feel it's not good enough for them. A friend was horrified that I buy stuff in charity shops, for example.

Dilligaf81 · 22/10/2020 08:52

I spent nearly 20 years working in banking and no it's not unusual at all.
From my experience though the older you are the more of a cushion you have.
I'm in the stage of a young family so have no money left (usually in our overdraft) but as the kids are getting older and we are progressing professionally it's getting easier financially.
Sadly it is more than a 'mindset' cost of living has never been higher compared to average wages.

MoltenLasagne · 22/10/2020 08:52

There are so many people who don't have money left at the end of the month, and then further people who DO have money left but they've got balances on CC that are rolling over so they're overall in a negative. I'd estimate its at least 25% of the working population.

Its so easy to do if you're in a HCOL area and / or you've got fixed outgoings on a variable income. So many people are stuck with rent way more than a third of their income plus a car payment and other debt. Add in bills on top, food then annual expenses which crop up every month (birthdays, Christmas, school trip, school shoes, new travel pass) and its not surprising.