To ask about debt/savings?

[IanHBuckells]

I know these always end up a bit gosst but just wondering how many people really have 3 months net wages readily available in a rainy day fund and if they do, at what point in life that becomes the reality. This isn't about figures as it's relative to income/outgoings so not looking for people to share that they have £xxxxx!

We have about 2.5 months wages in a savings account but that's about to be wiped out by a new kitchen, then we will start again. However, we also have a bigger loan outstanding on our car so in my mind we don't actually have any savings!

Most of my friends are in similar positions - a few hundred quid in savings but nowhere near 3 months wages unless they are saving for something specific.

We're mid 30's and sometimes I wonder if we will ever be proper grown ups

I've about 6 months of expenses saved and my partner probably about the same. However I've focused on this after renovations costs had mounted up and banks were suspending credit during the 1st lockdown - we literally had no money that wasn't tied up in something and it was very scary when credit had been maxed out and we still had things to pay. I'll now always keep a small cash buffer in my account, and some in a stocks and shares isa that I can access within a few days

We have six months' worth of a rainy day fund. It's not six months' worth of salary, it's purely outgoings. My DH isn't from these shores so we need to allow for extra time whilst his future employer sorts out sponsorship (if he lost his job).

We have about a years' worth of essential outgoings in savings - which is about 6 months income, give or take.

We're both self-employed so it's essential that we have money aside in case of injury, illness or a lull in work.

We have quite a bit in the bank, but we're about to use it all and more doing an extension.

It's about risk for me. I'm an NHS worker, so less likely to be made redundant or lose my job. DH is in the public sector but has a job that's in very high demand, he's previously lost his job and had 3 offers within the week. We have life and critical illness insurance if the worst were to happen.

We go through periods of having good savings but then tend to spend it on the house or a holiday.

We have around 5 x months worth of monthly outgoings saved at the moment.

No real debt, apart from a huge (£400k+) mortgage which freaks me out if I think about it too much.

We are however going to buy a bigger car soon, probably on finance, and I’m going on mat leave (with rubbish pay & terms) so expecting savings to be hit quite a bit by this time next year…

Mid 40s we have about 6 months saved of the minimum we would need to maintain current lifestyle. It has taken till our 40s to have anything in the way of savings at all. No other debt other than mortgage.
Up until now living month to month. But no debt.

After going through a messy divorce and moving, I havent got much. I do have small savings which I add to now and then when I can, in case I need a new appliance or large car repair.

Debt wise I have car finance (took on exh loan in order for me to keep the car that he did not want), but less than a year to go.

We have about 1.5 months outgoings saved up as an emergency fund, then separate funds for our wedding and a house deposit. No debt, bought our car outright for £2k

Mid 20s and about a years worth in savingS. My DH is very sensible and has been since he was a teenager, works hard, saves, invests savings… I am not as good but try to be frugal where I can!

I have always set quite a high threshold for what I call "affording" something.

I lived alone in a low income area, took home 1000/month and saved £200 of that. Ever since I've kept upping that savings amount whenever my income goes up. I've never had an expensive phone or a lease car etc.

I usually find that there's a story people tell themselves why they have to have x or y, but the story I seem to tell myself very often is, "nope you don't need that" or "nope, the cheaper one is fine".

(e.g. "I need a reliable car not a banger" - when actually a cheap second hand car would leave you able to afford a taxi/hire car to cover the odd occasion it might breakdown etc)

It all adds up.

Mid 30s, no debt (took over a decade to get debt free though) and now about a year’s income worth of savings however that will go towards a house purchase in the next year or two

I’ve about 4-5 months salary saved but about half of that I’d ear marked for essential home improvements .
We have a little more disposable income recently due to clearing some debts so I’m trying to save up for the house and holiday ( next year) but also a nice cushion too in the bank . It’s actually the most I’ve saved in years but what I need doing badly needs doing and it will add value to the house .

If you need a new kitchen and it adds value then I’d do it but I wouldn’t blow everything unless I had the potential to save over the next year . Like others you say you can get 0% interest on kitchens May work out better than blowing all savings at once .

*Yes, but that's a debt and the interest free option almost always costs more than cash price (so not free at all!).

We save for everything (aside the car which was a rare treat!) but it would take us years to save for a new kitchen (ours is falling apart!) and another 3 months joint salaries!*

It makes sense to have an interest free debt and a safety net of savings rather than buying the kitchen outright and having no savings. If it's actually interest free it should be the same cost over the period as buying outright. But even a low level of interest is financially safer than using all your savings on it. Have you looked at cheaper options like repairing the kitchen rather than refitting?

I have no debt and 1.5 months wages in savings (and trying to increase it) I have a lot of available credit but I don’t need it. I am just about to buy a car on finance

Early 50s. We paid off the mortgage a few years early in 2012 - though we had 3 months' basic expenditure saved before we considered that.

By late 2017 we had about 2 years' worth of expenditure saved. H's redundancy/severance payout was slightly more than that. Consequently one of us is really going to have to get a job soon... though lockdown cut our normal expenditure considerably.

I see these threads and always wonder about cars.

Cars seems to be this thing that people have huge debts on and have cars way bigger / fancier / branded than they need and this is a big part of the debt / savings issue they have.

The idea or £20 or 30 k on a car or getting new cars every few years is a nuts one to me.

The other one is getting into the cycle / habit of using the credit card and not paying it off immediately. Once you start its a really difficult habit to get out of.

I know very few people who have much savings at all.

Mid 20's, since buying a property I've stabilised at 1 months income of rainy day fund (no car to repair or dependants) but have a couple more months worth allotted for holidays/ fun stuff

If something huge were to come up I would be able to cover it on a credit card

At 30, all my savings went towards the deposit to buy a property
Following years
Paid into work pension
Paid off mortgage early
Continued to pay into savings each month
Current car cost 1k paid in cash, only needed 2 new tyres after the MOT
I am fortunate that my job was not affected by the pandemic. Some of my friends have not been so lucky.
I would rather spend money on holidays or breaks away than a new car
Have always been a saver
But there needs to be a balance between saving & spending. No point in work, work, work if you can't enjoy yourself

32 and about to have first child so savings will dwindle paying for mat leave.

We’ve just paid off our car loan so have about £14k saved. That’s about 3 months? We had more but it’s paid off car/nursery furniture etc

I have a couple of years living expenses in savings. Husband has significantly more. I had about £4K overdraft until I was 26/27.I started saving as soon as I started my first ‘proper job ‘.
I was probably early 30’s before I felt financially secure. I’m probably much too careful with money and should loosen the purse strings a little.

My car is 13 years old. I went to look at minis a few weeks ago and have the money in my account to buy a too if the range 1 year old car. I just couldn’t do it. I think it’s a hang up from my childhood.

• top of

I have about a year’s salary saved but about half of that came from a redundancy payment about 5 years ago. Fortunately I found a job during my notice so could put my payment straight into savings without having to rely on it to live

Paid off all my outstanding debt during lockdown and my student loan also finished then so can afford to put about a third of my salary away each month. I do that on pay day so it’s already away and then set a reminder the night before pay day to transfer whatever is left (even if it’s a small amount) into savings

I have a secondary savings account that is used for emergencies to do with the car and house and also pays for MOT and servicing

We have a years salary for one of us. But mainly due to inheritance.

We have a couple of months, but we will use some of that for a holiday over the summer. We usually have no more than 1 month available. If we save up any I tend to make an overpayment on the mortgage as otherwise we will be paying that until we are 67. We are both in pretty secure employment though and live in a new build house so not expecting any huge repair bills.

Also we have 2 cars that we own outright, so if we really needed cash quickly we could sell one of them, and release about 2.5 months joint salary that way.