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AIBU?

AIBU to think most people have no idea how wealthy people live their lives?

1000 replies

AnneValentine · 28/01/2024 07:38

Just that really off the back of a lot of threads but most recently one where multiple people were adamant that the only way it’s possible to have no savings if you have salaries of £200k plus unless one of the couple is squirrelling savings.

Followed up with how do they pay for a broken down car with savings? Hasn’t even dawned on them that people on those salaries don’t have cars that are breaking down.

Is it so hard to believe that money literally eliminates money worries? That you can create a level of security that means savings and such aren’t needed?

OP posts:

Am I being unreasonable?

733 votes. Final results.

POLL
You are being unreasonable
59%
You are NOT being unreasonable
41%
TeenDivided · 28/01/2024 07:41

If you have no savings then you aren't wealthy.
You may be high income, but you aren't wealthy.
High income high spend no savings people are asking for trouble should accident or illness occur.

AnneValentine · 28/01/2024 07:43

TeenDivided · 28/01/2024 07:41

If you have no savings then you aren't wealthy.
You may be high income, but you aren't wealthy.
High income high spend no savings people are asking for trouble should accident or illness occur.

I assume you’re not wealthy? Savings for what?

Consider over the course of a month £13000 hits our bank account.

Don't forget assets. Investments. Plus insurance covers most things.

OP posts:
Octavia64 · 28/01/2024 07:46

They start worrying about other things.

Can I continue to pay for private school for my kids if I get made redundant?

Why did I get less bonus than person X?

Can I afford a complete plane refit?

donotsubscribe · 28/01/2024 07:47

People live to their means though, and plenty of people I know who would be perceived as well off don’t really have savings, and often stretch to living beyond those means.

They have high salaries, but then buy an impressive house with a high mortgage. With that comes high bills. They want an impressive car, so they buy one or two on a finance deal costing hundreds of pounds a month.

They go out for expensive meals, have expensive hobbies etc.

These are just the ones I know, who sometimes say “we can’t come out for that meal, things are a bit tight this month”.

So yes, if you have high salaries and are sensible with the income, you can have a stress free life, but many people aren’t sensible so end up with the same stresses as anyone else (I’m not saying this is a wise approach!)

AnneValentine · 28/01/2024 07:48

Octavia64 · 28/01/2024 07:46

They start worrying about other things.

Can I continue to pay for private school for my kids if I get made redundant?

Why did I get less bonus than person X?

Can I afford a complete plane refit?

People at this level are rarely made redundant. They make others redundant.

OP posts:
Heatherbell1978 · 28/01/2024 07:48

I think even if you're wealthy you need 'savings' or 'money in the bank' as that's all it is. They could have a £3m house but if the boiler breaks they still need to pay for it somehow. Not sure what you're asking OP? Are you saying that if all your money is tied up in assets, investments etc you can get away with £0 in your bank accounts?

Octavia64 · 28/01/2024 07:48

He was made redundant.

Real life person.

Beyondbeyondbeyond · 28/01/2024 07:49

AnneValentine · 28/01/2024 07:43

I assume you’re not wealthy? Savings for what?

Consider over the course of a month £13000 hits our bank account.

Don't forget assets. Investments. Plus insurance covers most things.

Edited

Investments are all forms of savings so your posts make no sense. This is a deliberately goady thread.

unlikelychump · 28/01/2024 07:50

Are you just showing off OP?

AnneValentine · 28/01/2024 07:50

donotsubscribe · 28/01/2024 07:47

People live to their means though, and plenty of people I know who would be perceived as well off don’t really have savings, and often stretch to living beyond those means.

They have high salaries, but then buy an impressive house with a high mortgage. With that comes high bills. They want an impressive car, so they buy one or two on a finance deal costing hundreds of pounds a month.

They go out for expensive meals, have expensive hobbies etc.

These are just the ones I know, who sometimes say “we can’t come out for that meal, things are a bit tight this month”.

So yes, if you have high salaries and are sensible with the income, you can have a stress free life, but many people aren’t sensible so end up with the same stresses as anyone else (I’m not saying this is a wise approach!)

We don’t live beyond our means. We have no debt at all apart from mortgage. This is what I mean. The assumption that it’s impossible not to have savings but also assuming living beyond means. Those who really are established wealthy just don’t have either. They aren’t sitting there stretching themselves for a meal or worrying about money sitting in a low interest bank account.

OP posts:
Hubblebubble · 28/01/2024 07:50

The advice to have 6 months worth of pay in savings is applicable to whatever income level you have. The extremely wealthy people I know own farms and multiple properties they let out. They aren't reliant on a salried job for income.

Crishell · 28/01/2024 07:50

To me, 'wealthy' means having money behind you. So invested money in various places, maybe mortgage paid off etc.

I wouldn't consider someone with no savings as 'wealthy'.

AnneValentine · 28/01/2024 07:51

unlikelychump · 28/01/2024 07:50

Are you just showing off OP?

Always one. Probably more.

its a genuine question. I see this position on threads repeatedly. Completely incapable of seeing why everything is different when you’re financially secure.

OP posts:
rubbishatballet · 28/01/2024 07:51

I assume you’re not wealthy? Savings for what?

Consider over the course of a month £13000 hits our bank account.

Don't forget assets. Investments. Plus insurance covers most things.


Investments are savings though? Confused

Animatedapple · 28/01/2024 07:51

This is a bit of a strange idea - people on high salaries tend to be very interested in
money and have a lot invested in various ways. They most definitely have savings! Unless they are money illiterate and then they won’t stay rich for long.

JennyfromtheBlok · 28/01/2024 07:52

@AnneValentine so these ‘type’ of financially secure people would have to spend every single £ / penny each month?
Edit- and have nothing left ?

Flensburg · 28/01/2024 07:52

Investments are savings.

Heatherbell1978 · 28/01/2024 07:52

I agree with PP that people on high incomes can choose to make their lives easy or hard. They can live well within their means, squirrel money away into pensions, savings etc and have a nice buffer. Or they can 'invest' in high end cars, fancy houses and a high end lifestyle. I know both types and I do think the latter is quite a high risk way of living life.

W0tnow · 28/01/2024 07:52

People at senior levels are often made redundant. Often! I’ve known plenty. The only one who had no savings, because they lived a very extravagant lifestyle, was lucky to find another job within a couple of months. Otherwise they’d have been in big trouble. 3 x private school fees, and eye watering rent for starters (this was in Singapore).

Others weren’t so lucky but had savings as a buffer.

howaboutapartysong · 28/01/2024 07:53

OP is making no sense

Unbeknownsty · 28/01/2024 07:54

I don't understand what you're trying to say, OP.

AnneValentine · 28/01/2024 07:54

Crishell · 28/01/2024 07:50

To me, 'wealthy' means having money behind you. So invested money in various places, maybe mortgage paid off etc.

I wouldn't consider someone with no savings as 'wealthy'.

So if someone lives in a 7 figure house, mortgage comfortably being paid off, decent investments with return, two pensions in place that they could arguably retire on now by some standards, living a very decent quality of life you wouldn’t consider them wealthy because they don’t have a couple of grand in savings? What do you think they need that savings for? This is what intrigues me. How much savings should they have and what’s it for?

OP posts:
GoldMerchant · 28/01/2024 07:55

AnneValentine · 28/01/2024 07:43

I assume you’re not wealthy? Savings for what?

Consider over the course of a month £13000 hits our bank account.

Don't forget assets. Investments. Plus insurance covers most things.

Edited

As a couple, DH and I have an income probably just a little higher than you've described. Of course we have savings.

We have some money kept in cash for emergencies/contingencies. We have pensions, ISAs, etc. I'd feel very insecure if we spent every penny of what we earned (though, yes, our expenses are a lot higher than most people's).

What we probably don't have to do is save up for things we want and we don't dip into our cash reserves if eg the dishwasher breaks. But we still have savings.

spriots · 28/01/2024 07:55

Your definition of savings is so weird!

theduchessofspork · 28/01/2024 07:55

AnneValentine · 28/01/2024 07:48

People at this level are rarely made redundant. They make others redundant.

IME people earning 200k are often sacked / made redundant and most of them have savings because they can easily afford to and are quite good with money. They mostly don’t worry about broken cars because unless they are v into them, cars are on lease.

Anyway - I don’t understand your point OP? It’s that most people earning that kind of money don’t have savings? IME they mostly do.

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