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

Dh and I are mid thirties, and have at least a year net income in savings, although not all of that is instant access.

I would say we hit the stage of having net 3 months in savings at all times, eg even after big purchases, at age 30, when we bought our family home but retained that level of savings separately.

We are both very careful with money though plus are on high incomes. We would never buy a car or a kitchen or a holiday etc if it meant digging into the emergency money. I suppose we consider that money as how we would pay the bills etc if we both lost our jobs - with tight budgeting it would give us around 6m to sell or rent out our home and move to a cheaper/smaller one to free up more cash.

50, single parent of 3 still,at home, no support from the ex. Mortgage free for 10 years. About 6 months in my current account and many more in investments due to an inheritance. I feel very lucky.

I should add, for me it's a real security thing. I panic at the thought of losing my job and not having enough money to provide well for my kids, I know I wouldn't cope well in a tight situation so my budgeting is all geared around trying to make sure that never, ever happens.

I'm pretty sure all our friends think we earn about half what we actually do, based on how we live!!

I have a years worth in an easy access account. Other money is in investments or fixed term accounts and wouldn’t be accessible in an emergency. I know I’m fortunate to have this cushion and I hope I’m lucky enough to never need to use it. But I can sleep at night knowing if the worst thing happened I’d be ok for a year or so.

We have just over 2 months saved although only half of that is instant access.

The other half is a couple of months into a 5 year sharesave plan which is reasonably expected to treble in value - so I'd pretty much sell everything I own before pulling that tbh. Which leaves us with a month really.

@NoIDontWatchLoveIsland

I should add, for me it's a real security thing. I panic at the thought of losing my job and not having enough money to provide well for my kids, I know I wouldn't cope well in a tight situation so my budgeting is all geared around trying to make sure that never, ever happens.

I'm pretty sure all our friends think we earn about half what we actually do, based on how we live!!

I hear you. I keep a large savings cushion so I can survive if I ever need to resign.

A lot of people talk about a running away fund, to run away from a partner. I keep a running away fund, to run away from my employer.

Gosh. I have literally €1001 in my savings. I'm not that great with money but I'm getting better. A number of years ago I had personal debt of over 20K. Along with a mortgage. Still have the mortgage but there's only 7 years left. And the debt is gone.

I have a quite decent job, but still 2 kids at home in education. A small pension pot that I need to build, and fast. I want to not work anymore (now) but definitely within 10 years. I'm 51.

I had 8 months in savings. Thanks God. Lost my job and Covid. Unemployed six months. I was worried about getting another job but cringe when I think what the reality would have been.

Have about 7 or 8 months average monthly salary in savings for the breadwinner, not both of us. Works out about 25 months of our absolute minimum bills figures. Self employment though and a huge worrier so squirrelled away lots when spare just incase and haven't spent what probably could've done. Have also continued to live in a small house that could probably do with upsizing as was too worried about stretching self and it going wrong

Yeah we only have a couple hundred in savings, nowhere near a month salary for 1 of us. It was easier before we had DD! Maybe we'll manage to save some more when childcare gets a bit cheaper after she is 3

We have savings that would cover 12months of 'essentials' (so mortgage, bills, food shops etc). We often dip into this for things like holidays/car insurance or something unexpected (leaky roof or similar) and then pay it back.

For a long long time we lived month to month with no savings (we still do live month to month of course!). But then built up slowly, any pay rises the difference goes in savings etc.

We also put the money in an investment account and so it grows more than a standard account which helps.

It sounds so obvious - but truly every penny counts. If you have anything left in your current account at the end of the month just put it aside (£10, £30, £50 - whatever), and that's how it slowly starts...

We have about 6 months worth in savings. No debt. 40years old. Two kids. My husband works 6 days a week though, I work 4, kids in care 3 long enough days though so there's trade off to everything.

I have a few months saved in an account I can access reasonably fast but would have wait for transfer and about 1 month saved more instant access... but that is more a holding pen than savings; it currently holds money I'm waiting to pay out; ground rent, servicing fees, money we've saved to buy a new bed etc. Once that lot goes out it'll have less than a month's wages in there - so the emergency fund is low. I top it up in case of emergencies if I can and flip money out of & back to my main account via that account but it fluctuates.

I try to save every month even if it's only a little but I occasionally put the savings money towards an expense if something needs doing fast or we just have a tight month and prioritise covering that. We'd like to be in a position to both save more in readiness for DC.

@NoIDontWatchLoveIsland

I should add, for me it's a real security thing. I panic at the thought of losing my job and not having enough money to provide well for my kids, I know I wouldn't cope well in a tight situation so my budgeting is all geared around trying to make sure that never, ever happens.

I'm pretty sure all our friends think we earn about half what we actually do, based on how we live!!

Ps - this is the case for us too. Absolute security blanket.

We are planning a move soon but the emergency stash doesn't even figure into our deposit/stamp duty - it's too precious to use 😂. Its really how I can sleep at night 😂.

Early 50s, never had that level of saving, just about to make final aptment on some significant debt, so that is going to change (I am never going there again)

Luckily my kids are all decent with money, and have got the saving habit early

32 and I have nearly a year's salary saved up, so does my husband. Only debt is mortgage

My husband and I share all finances, we have 7 months of combined wages in savings which is around 14 months of spending money. This dips up and down all the time because although we're good savers, we're good at spending it too.

We're about to spend half of this on a small house extension and we're also about to have a baby so spending will probably go up.

@RedToothBrush

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.

Well, it all depends on what you like to do yourself. We love eating out and I absolutely love finding great little restaurants and bars where ever we go. It's why I hate all inclusive holidays, I'd rather be supporting small local businesses rather than big international chains. Most of our travels are to Asia or Africa in countries where food is generally cheap anyway. We also visit love visiting local supermarkets to stock up on drinks and snacks for the room though.

So yeah, just giving a perspective on why some people like to eat out every night on holidays, if you're not in to eating out then that'll definitely save you some money.

We have probably six months savings and another two months worth in investments we could call out in an emergency. We haven’t put much more in lately but we have had some larger expenses that needed to be addressed.

We started being able to save more in our 30’s when we took our two DC and moved in with my parents for a year to get the deposit for a house together. Once we were able to get on the property ladder, saving became easier.

Late 20s and we have about 12 months net salary for both of us saved, and no debt at the moment. However, about half of the current balance will go on a house deposit next year.

We save 30% of our salaries every month (increased from 20%) and I have quarterly bonuses that I save entirely. We have very high rent costs but we don't have children so no childcare costs. We budget very carefully using a spreadsheet, but that's just while saving for the house, I do find a bit boring...

We have a years joint net income in savings and no debts apart from mortgage

We are late 30s and have quite a lot of savings but we are about to blow the vast majority of it on a huge house renovation which should add at least 100k to the value of our property. We will leave a savings buffer in our savings account (about 2 times our monthly combined salary) and then start saving again for round 2 of house renovations.

We have a $1500 emergency fund, and also 9 months 'bill money' saved in a separate account, aiming to get that to 12 months this year. It's the mortgage payment, utilities and insurance. But doesn't include food or spending money, so that will be after too.

Also have separate savings accounts/sinking funds for things like property taxes and insurance that need to be paid annually, and a health savings account with around $2000 in for health expenses - which is no where near enough in the US health system!

We love eating out and I absolutely love finding great little restaurants and bars where ever we go.

Same here, yeah we may spend quite a bit in nice little restaurants. But then we don’t spend too much money on clothes, drinks, take aways or other things so it balances out.

I only have £200 in my savings account in it stresses me out. I've been in a very secure job for the last 3 years which has taken the pressure off and I've also had a child which took all my savings.

I have other savings and my partner will be able to release a large amount of money soon, but my aim is to have an emergency fund of 4 months joint expenses.