To ask your monthly household income, and how much you save, on average per month?

[NeverGuessWho]

I am BU to ask, I know.

I am a lone parent, earn a low wage, and am on UC, with three teenagers living at home.

My total household income is £2,740 per month (net).

Currently, saving is sporadic, but I need to change my mindset so that saving is prioritised and can be maximised.

I'm just looking for some inspiration and to gage an idea of what's do-able on my income.

Thanks.

She works as well. Even if she didn't everyone has the right to have some savings even if you are solely dependent on benefits.

She’s being subsidised by the tax payer though so isn’t a net contributor. Their point is valid.

Low earners who don't get benefits aren't net contributors either. To be a net contributor you need to be on a decent salary. Their point is not valid, the money is OP's when it gets into her bank and she can do what she wants with it. Get over it.

We must keep the poor poor otherwise who knows what will happen.

OP if you are getting a benefit top up make sure you are utilising the gov help to save. You can save £50 per month and at the end of 4 years you get half of your highest balance... mine has been £50, now zero but we live in hope ha.

No that's what i get and you dont get much more. Like £60 and no housing or council tax help if you have a mortgage. My council tax is £125 with single person discount.

I’m in the same boat as you and I save via the Help to Save scheme. Would that work for you too?

https://www.gov.uk/get-help-savings-low-income

The system seems odd that someone who works and is topped up by benefits actually gets paid more than some professional people such as teachers .
espcially as they will have put earnings on ice to do bith a degree and a professional qualification .

A teacher who is a single parent to 3 children would also get topped up by benefits.

I am over it thanks - considering we pay more in op’s household income a month in tax. What’s your contribution? I don’t have an issue with that. I have an issue when people are justifying hard working professionals such as teachers having less income than those topped up on benefits. I won’t be alone in that and considering over half of adults are now net takers. I’d be worried about how it’s all going to be paid for.

So you have a mortgage. That's your reason then. You have a financial asset.

A teacher who is a single parent to 3 children will also get benefits. OP gets benefits because she is a single parent of 3. If she had no dependents she would get no benefits. And not only professionals are "hard working".

Nobody is justifying teacher pay being shit, people are sticking up for the OP who has done nothing wrong except claim what she's entitled to and is getting slagged off by people who think they're morally superior because they pay more tax. You aren't.

Have you read my posts - in fact scrap that no you haven’t. Op is doing 100% the right thing - it’s the system. However, she is clearing a take home of someone on just over 45k - way above the national salary. That’s is completely broken, unsustainable and highlights the absurdity that over 50% of adults take more than they contribute. The dependency on the state is at record levels and highlighted by the ONS this year.

Is it the governments fault? Yes - 100%. Can this ridiculous system be sustained long term - no. People on 50-60k who are often worse off than those topped up are getting very cross. They pay an awful lot in and take nothing out. Higher earners are always being abused whilst they are expected to fund everything for everyone else. Can’t see how that will eventually cause economic breakdown? It will and the treasury have already been told about changes in economic behaviour.

People need to look to the future - this level of funding will end up collapsing - much like our public buildings.

They need to top raise the bar on what people can have as savings before benefits are affected.
It doesn't make sense at the moment because it stops people wanting to save. As a society we should be encouraging people to save.

It used to be 16 grand I ruin it should rise with inflation. Needs to be at least 25 grand.

People on £50-£60k shouldn't be getting cross. They are far better off long term than those living on UC and if they can't understand that they're a bit silly. When OP's children are grown up and she loses all her benefits and is struggling on a low salary will those on £50-£60k be happy?

People don't think long term and that's the issue. I bring home £1.5k per month working full time plus £500 per month UC and I'd swap for a £50k salary in a heartbeat. I certainly wouldn't be complaining about it.

When did welfare become a way for people to save money for themselves, rather than being a safety net to provide the needy with the basis. Savings are not a basic. People can try and justify it all they like, but this is one of the reasons why the public’s attitude has become so hardened towards the welfare state. It’s no longer a safety net, it’s a lifestyle choice.

Not really what you think that matters is it though? Facts are - the ONS has stated that state dependency is at its highest level ever this year. The treasury commissioned research which said the extortionate tax on those with PAYE jobs was not only hampering productivity, it was reducing tax take because people are changing economic behaviour. Like you say - people aren’t thinking long term. Instead of incentivising these higher tax payers to keep working and providing maximum output - the opposite is happening.

In a cost of living cross, people don’t think long term. They will see people working part time hours, getting the top ups, free childcare and financially - better off. They will change their economic behaviour accordingly. It’s literally what is happening right now.

The welfare state as it stands is unsustainable alongside a huge public sector. Collapsing schools and hospitals are just the start. People would be very unwise to ignore the warning signs. It’s literally short term thinking which as led to this. Instead of taxing wealth or encouraging more tax receipts - the government have taxed PAYE so much people are changing their behaviour. Especially at 50k and 100k. The biggest contributors are actively going out of their way to work less as they end up worse off. That means less for everyone.

So crack on and see how it all works out.

And why is that though? Due to the cost of living. Rents are obscenely high.

I'd be happy to see a huge system overhaul where businesses are forced to pay higher wages instead of people having to rely on top ups, and rent control so private landlords can't make so much profit, and higher taxes for the very wealthy. But when you suggest that everyone says THAT'S not sustainable either, that businesses can't afford to pay people higher wages and private landlords are poor and hard done by and need to make a profit at someone else's expense, and the very wealthy will just leave the country rather than pay more tax. This government would rather let the taxpayer pick up the tab and their rich mates live it up.

So genuinely, what is the alternative? Let the kids starve? Force women to stay in abusive relationships because they can't afford to leave (one of the reasons why tax credits were invented in the first place).

At the moment - no alternative. Just the collapse of public services and welfare which is what’s happening. As I said, the buildings are just the start. Staff have gone, the public services that people rely on are literally crumbling. People have warned and warned this would happen. Often called hysterical. Especially when school buildings and their real state was discussed.

The ONS has sounded the alarm this year about the huge burden of state dependence. The treasury have been told that they are actively damaging productivity and lowering tax take. Those on PAYE are sick of being hammered and are changing their behaviour or taking their skills elsewhere. Those alarms will be ignored until it is too late.

Tax credits were the worst thing for this country as it is what has started the state reliance we see today. Where people are needing to be topped up. Unfortunately some people do make a life choice out of it and there are many people who just miss and are a lot worse off for working.

How it will be changed long term I believe - is a reduction in the welfare state. Bit by bit. Then things like, only the most critical and urgent care on the NHS. People will need to up skill .and look for work that offers perks like private health insurance. Many private sector jobs are moving to this model already.

Is that what I think should happen? No. Is it what I think will happen out of necessity? Yes. The current public welfare/service is unaffordable. You can’t have a model where over half of adults take more than they put in.

The so called scandi model that everyone on here raves about. The highest tax payers here - are already amongst the highest tax payers in the world. In fact with marginal tax rates of over 100% for some here on 100k. Their maximum is about 52%. People on PAYE are paying more than their fair share. The difference there? Everyone else pays more tax too, not as many adults are economically inactive and many strive for professional jobs. If we were to move to that model, it will require many more people pulling their weight. Alongside taxing income more fairly across the board, they tax wealth more too.

My prediction is a slow collapse of the public sector as is (which is starting) then a move towards perks with employment.

We have about 2k income a month for 2 adults and 2 teens, that's with my wage and benefits oh is disabled and unable to work, I save 50 a month with help to save which is a special account for people on certain benefits

A bit goes into kids ISA’s, my ISA, both our pensions and other investments. Varies each month.

It varies a bit with overtime etc. but with both sets of wages, CB, DLA, small amount of UC it's around £4300. We save £100 as a minimum as it's a direct debit so we don't have to think about it. Most months I'm able to move another couple hundred to the savings account- doesn't happen in the summer holidays or near Christmas! The idea is that we're saving part of DS's DLA to make him a sensory room.

I'm paid weekly so every week I trickle money places - £50 into an isa, £25 into premium bonds, £25 onto the mortgage, £25 into a starling account, then £50 a month into a help to save account. Those trickles add up to nearly £8k a year. I also like to use cash and stick odd notes away to save.

I was never a saver when younger but I love watching my little pots grow now!