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

The other thing i find surprising is just how much people spend on holiday. Its all the extras. Like do you REALLY need hold luggage for EvERYONE for a week? Or how people eat out every lunch and dinner (when buying a loaf of bread and doing it yourself is an experience in local culture going to the supermarket and infinitely cheaper). Weve travelled a lot but have done it on a shoe string (even after having ds) and stayed in some random but awesome places and thats been part of the experience.

I find what people think they need for a holiday surprising. We could afford to eat out every night on holiday now, but i don't want to and find it too much.

Its all adds up.

Its never made a difference to our lives in practice but it certainly has to wallet.

We both keep 2-3 months gross income in instant access cash savings and put further savings (not including pensions) into funds. In total we probably have about a years gross combined income in savings.

No kids, early 30s, and we have kept a reasonable control of lifestyle creep as our incomes have increased.

I have several months salary saved. But we really want to move house when our mortgage deal ends in Jan 23. So it will all go towards a deposit as we bought the cheapest house we could as first time buyers. Meaning what will be leftover from this house. When we sell will be less than needed for the next deposit.

In the meantime if needed it is a rainy day fund. Then when we move we will build it up again.

Surely it makes more sense to credit the kitchen and pay back when you remortgage with the increased equity from said new kitchen?

Seeing all debt as bad is not being smart.

32, single, live alone. I did have £20k saved but that went on a deposit, once I bought my flat I had literally £0. Now I’m back up to £500. I’ve had an expensive couple of months of getting essentials for the flat (no big renovations, just furniture) and unexpected vet bills for my dog, or I might have saved a little more by now. It’ll be a while before I get to 3 months salary though, probably about a year of saving.

Totally agree with Curiosity101 - it’s about being in a couple and working as a team. I have a good salary but have been a single mum for most of my working life. I have zero savings because a huge part of my outgoings have been spent on childcare. At 52 I’m now trying to play catch up!

I've got about 1.5 years of living expenses in savings, but that is because I'm planning to quit my job and travel so I've been saving more and more for this.

We used to have zero savings, but have made a huge effort to save the last 5 years and it definitely makes you feel less anxious/more secure. Now have enough to cover basic outgoings for a year.

I've not long bought a flat, which wiped out my savings. I have the grand total of about £500 in my savings account but will hopefully start to build that up again now that the flat is furnished.

We have 3 months expenses in a separate account we'd only touch in an absolute emergency
I was always taught to have that put by

Other savings in savings account

Premium bonds

Then a post office account for Christmas

COVID has made me realise we have a good system in place so many people lost their jobs and/ or spent a time on furlough and if you don't have anything put by you can soon get behind - there wasn't much help for people

Late 40s. Worked pt up until I was 42 and had minimal savings. Now I have 10 months savings in my.national savings bonds and another 10 in my bank.

I'm 41 and have 6 months saved but I want to buy another house next year so will be wiped out. I have tiny fixed outgoings so could probably save more but I also enjoy living!

I'm 34. Have about 8 months wages saved. We have 2 DC, a mortgage. We got help with the deposit and help to renovate.

We'd be up s* creek without help.

I have seven months but have applied today for a better paid job which means better savings. Let's see if I get it.

3 months outgoings are in savings, not 3 months wages though.

I am trying to keep that as a minimum and save for the house bits that need to be done, on top of that. Hence my kitchen has been put off a couple fo years.

I have about 15 months gross saved (teacher on upper pay scale plus tlr, just to give an idea of what that is).

I'm 35 now and DH 51 (no judging the age gap please, we were both adults, free and single and are very happy!).

House is paid for so no mortgage.

We have one DS who is 7. There won't be anymore children, so no more childcare costs etc.

We both worked very hard to save when we started out which has led is to be in the position we are in.
Still careful with money though!

House is paid for so no mortgage.

I think this is my next plan. I have some shares paying out later this year.

Can't decide whether to go for the new kitchen, or pay the mortgage off.

We have savings. Not much. However if something happened that meant we needed to use those savings before that happened we'd cull every single outgoing in our accounts first. So that our meagre savings would last longer.

At the moment our outgoings only look like they do because we both work. I often look through them and consider which ones would go first.

We're low on consumer debt, we do have it but each debt was really well considered.

Savings are the second part of our emergency planning. Cutting right back is the first part.

Literally only in our 40s, nearer the end of them.

No debt apart from the mortgage. We live a very boring life, no expensive hobbies so prior to DD we put a lot of money aside each month.

We put money into a saving account first thing after DH's salary comes in and then again when mine is due. So the money is not really missed and I budget with the rest.

When nursery was finally over we put this money also aside, we got used ot not having it.

Every year my bonus is parked immediately and we do a mix of saving and spending.

We have reasonable funds to last around 6 months and then we would need to downsize. But this money was a windfall and not saved. We have savings too... but.. we are constantly dipping into them: either stuff going wrong with our ancient house, or unexpected vet bills (yip, we have spent over £2k on this sort of stuff already this year: sheer bad luck)

I have noticed that my friend who is most careful with money (clothes from primark, nothing designer) has the most savings. Other friends have all the latest gear and look wealthier but are living from credit cards.

I wonder what you mean by your kitchen is 'falling apart'? Are the doors hanging off by their hinges? Or is it just it's getting a bit old and you fancy an update? Mine is about thirty years old but I have zero interest in spending money to replace it. I don't understand why you would spend money put aside for emergencies on a new kitchen.

I'm 29, DP is 31 and we have 3 years+ salary in savings each, but we're well aware that that is completely abnormal.
Choosing not to have kids has probably been the biggest contributing factor into this as a couple. Plus a lucky house investment for DP, and running my own business for me.

I have about a weeks worth saved up. Had 6 weeks at the start of covid, and I know that because that's how long my savings lasted when I didn't get paid for 6 weeks, then went on to 80% accruing debt, then short time some weeks when went back to work in July.
Changed jobs end Aug, taken me until now to pay the backlog back of various things and start saving again.