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

[AnneValentine]

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?

That’s not true, might not use the term redundant, but this year all but three of our sixteen strong leadership team have over night been offered a settlement agreement and sent on their merry way. Most of the company won’t know that’s the reason they are no longer with us.
Once you reach that level, one thing isn’t going right and your the scape goat, your paid to take that level of risk and responsibility.
As an EA I’ve worked with several Exec’s, who have gone in to meetings literally not knowing if they will come out with a job or not.

Well you probably could save money if you stopped buying insurance for everything. It’s such a waste of money to pay for insurance for items if you could afford to replace them if they break.

"No idea how wealthy people live"

There are plenty of examples in the news

The Royal Family
Footballers
Huge Business owners
Musicians
Actors
Land owners
Entrepreneurs
In every country

At the 200k level of course people are made redundant. Its good money,but not mega bucks.

The pensions and investments are a form of savings though?

Sorry, what ? Are you joking? Why do you not understand why people might save even if they earn plenty?

13,000 can quickly become zero if your roof blows off in a storm, or if one person suddenly becomes ill or say if you want a new kitchen and don't want it on finance, for example. However much you earn, if you've no savings you're not wealthy you just earn highly.

I don't entirely understand the point the OP is making, but what I have always noticed on Mumsnet is the assumption by a very large proportion of posters that everyone must have saving and should be saving. In my experience, a huge percentage of people don't have the enormous salaries that people boast about in Mumsnet, and don't have any savings, because they can't afford to save despite working extremely hard and long hours. Many people rely on using credit cards to survive and live with constant debt.

Er, we are in this bracket, complete with 7 figure house on a very manageable mortgage, and I wouldn’t say we are wealthy. We have a high income, but we are still always trying to save. A 7 figure house isn’t a flex if you live in a major city. True, we are not worried about saving for things car breakdowns or medical/house emergencies because we have excellent insurance and those expenses are things we can cash flow. However, we ARE saving for 3 sets of university expenses, kids’ house deposits, etc. We also have shorter term savings for things like house renovations, the car we’ll need to replace in a year or two, and big holidays. It can easily cost 20k to take a family of 5 on a two week safari. Similar cost for a good secondhand car paid for in cash. Unless you’re going to pay for your life with financing, you need to save up a bit for things.

We do have pet insurance. I assumed the question was based on the premise that insurance wasn’t paying out - let’s face it they’re known for it with pets - and we could find the money with little issue if we wanted to pay for it. There are things I could just not pay for that month or cut back on etc. I’m not sure I would though having been in that situation although a different trauma and it was barbaric.

I can’t believe you think people earning 250,000 are unlikely to be made redundant. I work in finance and they’re the first to go when there are restructures!

I asked my rich (as in multi-millionaire) friend, and she laughed. She has assets, investments, and savings in the form of stocks and shares ISAs and savings accounts. She says you never know when you might need or want a few quid, whether for a new car, new hip, another kid’s wedding… (I think her definition of ‘a few’ isn’t the same as mine).

Our kids do have savings. We can’t touch it.

I assume you weren’t conscious of current events during 2008.

Savings for big outgoings, like house renovations, emergency repairs etc. At a certain salary you have a certain lifestyle and level of outgoings. So occasionally will have to dip into savings for a huge holiday or, more often, a big house project.

Most interesting thing for me is how people see the difference between "wealthy" and "rich". I think of wealthy as having some assets/ investments and rich as enough assets/income not to work. Some posts suggest it's the other way around?

Op

I think how you live month to month is relevant to only you.

You have absolutely no idea how other people earning similar to you operate their monthly finances.

Oh and we don’t all take out insurance in the event of a breakdown we just buy new

Of course but they didn’t affect me. What’s your point?

absolutely, very naive for someone to think redundancy doesn’t happen. In my company it’s called the “target on the back” when you breach £200k. You’re so expensive that any downturn, they’re the first to go if it’s an area not bringing in enough profit.

Are you bragging op because you know that's crass right?

This thread might have been more accurately titled ‘AIBU to think most people have no idea how I personally live my life?’.

Look at Constance Marten, who got 20k from the family trust in a month or so last year. That’s wealth, large trusts paying out tens of thousands to various relatives a few times a year. Not being able to afford boiler insurance.

Haven't rtft but the wealthy people I know have no mortgage and following two sold businesses over £12 million floating around, and a little hobby that brings in about £100k every few months.

They are wealthy, not rich.

You be lucky to be able to walk in a bank and withdraw “savings” they have all closed round here. I can sell share investments online and inexactly the same time it takes me to transfer money from savings. I could also have “savings” in a 2 year locked account that I can’t access- by your definition are these then not “savings”

Similar here. 4-year-old cat came home with a broken leg. On a Bank Holiday of course, so OOH consultant needed, one night stay, then surgery at my normal practice. Total bill came to just over £5k. (I only had to pay the £95 excess because of insurance - learned my lesson after a previous cat cost £3k for a broken jaw.) Both cats were healthy before and after. No long-term issues. No suffering. It would have been an absolute sin to PTS over a broken bone.

@decionsdecisions62

No I think she is trying to educate posters on her view of the world in relation to those in a certain income bracket.

This is absolutely ridiculous because she cannot possibly know how others operate their finances. I mean it’s crass to talk about money in that level of detail with people isn’t it?