My feed
Premium

Please
or
to access all these features

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:
Report

Am I being unreasonable?

733 votes. Final results.

POLL
You are being unreasonable
59%
You are NOT being unreasonable
41%
AhBiscuits · 28/01/2024 07:55

If you have spare money in your bank account at the end of the month then you have savings. Investments are savings.

Report
howaboutapartysong · 28/01/2024 07:56

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

CuriousGeorge80 · 28/01/2024 07:56

This is such an odd post / hypothesis. Why would rich people not have savings just because they can pay for most stuff without needing them? Investments are savings!

Based on your definition OP we are wealthy (I earn over 250k a year) but we have loads in savings because that’s common sense!

Report
Octavia64 · 28/01/2024 07:56

A lot of my friends from uni went into the city of London.

Some have salaries over 200k. Finance is known to be unpredictable jobs wise and many have been made redundant at least once.

The sensible ones have lots of savings.

They do worry about money because finance careers don't last forever and you have to have the physical stamina to do the hours.

Report
BendingSpoons · 28/01/2024 07:56

I think the people who really don't need to worry are those from wealthy families. They earn well themselves but they also have a safety net in that they can ask families for help if something happens, like one of them loses their job.

I'm always a bit surprised at how people often adjust their spending to their earning. When people talk about having large 3 figure salaries but not having enough surplus for whatever is needed (school fees etc). They start listing their mortgage payments, car payments and so on, which are vast to me. It's irresponsible to me to earn so much but have it all marked out for different costs so that actually you struggle to redivert the money when unexpected coats come in. But I guess life is still much easier if you can stop eating out for a month and save hundreds or downgrade one of your new cars and get thousands.

Report
rubbishatballet · 28/01/2024 07:57

OP I don't understand why you're making a distinction between investments with a decent return and savings? It's the same thing.

Report
Setyoufree · 28/01/2024 07:57

Investments are savings?! Or do you only count savings if they're with a high street bank??

Bizarre thread. And yes, people at that level do get made redundant. If the company merges or gets taken over, there's only one CFO, one CEO etc

Report
renthead · 28/01/2024 07:57

But you've said you have assets and investments. That is a form of savings.

Someone with no assets, investments or savings but with a high income that they are spending each month is not wealthy, because they have no wealth.

Those are two entirely different scenarios.

Report
3WildOnes · 28/01/2024 07:57

I think high earners need savings more than anyone. UC isn't going to cover their mortgage if they are made redundant.
If you don't have any savings and as others have said investments are savings, then I think that's rather unwise.
My friends range rover broke down recently and getting a replacement part cost an absolute fortune.

Report
Crishell · 28/01/2024 07:57

AnneValentine · 28/01/2024 07:54

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?

Please read my post again. What you described is exactly what I would consider 'wealthy'.

Report
GreenWheat · 28/01/2024 07:57

I agree that the OP isn't really making sense. Most people who are long-term wealthy are very savvy with money and have a range of investments, including "liquid savings" they can access in an emergency without the delays entailed with getting to funds invested in property etc.

Report
TeenDivided · 28/01/2024 07:57

@AnneValentine First as has been pointed out, investments are savings.

Actually by most measures we are wealthy. So we have been able to help address my DDs' serious medical issues without impact. These were unanticipated but I have been grateful to have our financial cushion behind us.

Report
Meadowfinch · 28/01/2024 07:58

It's terminology. The wealthy call them 'investments' and they generate a higher income. £1m in a pension fund, properties to let, stocks and shares, gold.

But they are still 'savings', assets that can be liquidated in a hurry when unexpected needs arise.

Anyone who has no savings and no investments is not wealthy, no matter what their income. The perfect examples are notable footballers and tennis players who have been declared bankrupt because they blew their huge incomes on drugs, bling and other rubbish. Definitely not wealthy.

Report
Noicant · 28/01/2024 07:58

I’m struggling to make sense of the OP, ofcourse it’s possible to spend every penny you earn at whatever income level. But I consider my property, my savings, pensions, investments to be savings. I wouldn’t have been able to accumulate them without actually saving some money at some point.

You only have to stop worrying about income if you have cash generating assets in the first place which are obtained either through a gift or because at some point you saved some money.

I consider wealthy to be having significant assets not just income.

Report
AnneValentine · 28/01/2024 07:58

Flensburg · 28/01/2024 07:52

Investments are savings.

No they are not. Savings are money you can easily access in the case of an emergency. That’s not the case with pension or investments, neither of which can be accessed.

OP posts:
Report
RosesAndHellebores · 28/01/2024 07:58

As others have said they have investments.

Report
theduchessofspork · 28/01/2024 07:58

AnneValentine · 28/01/2024 07:54

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?

Funding the bloody kids, fixing the roof and the pool.. but mostly kids.

Report
Cornishclio · 28/01/2024 07:59

I debt counsel on a money saving forum and there are a lot of high salary people on there living beyond their fairly extensive salary £100+k . Obviously not all high income people do this but they often have high mortgages and the costs which go with high end property and an interest rise can make a big difference. Or they lose income because of redundancy, illness or maternity leave or their business goes under as it did in the pandemic. So some are high income but also high debt.

I would feel uncomfortable without a savings buffer but we are early retired on a £60k net income so not wealthy.

Report
Flatleak · 28/01/2024 07:59

Of course investments can be accessed. I'm starting to think you don't know what it's like having money OP.


I'm wealthy. I'm 30, mortgage free, on a house in London. I still have savings. HTH.

Report
Beyondbeyondbeyond · 28/01/2024 07:59

AnneValentine · 28/01/2024 07:58

No they are not. Savings are money you can easily access in the case of an emergency. That’s not the case with pension or investments, neither of which can be accessed.

🙄

Report
AnneValentine · 28/01/2024 07:59

Noicant · 28/01/2024 07:58

I’m struggling to make sense of the OP, ofcourse it’s possible to spend every penny you earn at whatever income level. But I consider my property, my savings, pensions, investments to be savings. I wouldn’t have been able to accumulate them without actually saving some money at some point.

You only have to stop worrying about income if you have cash generating assets in the first place which are obtained either through a gift or because at some point you saved some money.

I consider wealthy to be having significant assets not just income.

You might consider them to be savings but they aren’t what I’m referring to - I’m talking about the emergency pot of savings that apparently you have to have for an emergency.

OP posts:
Report
FlabMonsterIsDietingAgain · 28/01/2024 08:00

Do you understand what saving are OP?

"decent investments with return" these are savings

"two pensions in place that they could arguably retire on now by some standards" these are savings


Do yo only class something as savings if it's in a bank account called 'savings'?

Report

Don’t want to miss threads like this?

Weekly

Sign up to our weekly round up and get all the best threads sent straight to your inbox!

Log in to update your newsletter preferences.

You've subscribed!

Passingthethyme · 28/01/2024 08:00

You need to define wealthy. To me wealthy means no money worries at all, ever, several properties, not actually needing to work etc etc
Savings to me is just standard unless you are actually poor and live from pay check to pay check. Most people have some savings for a rainy day?

Report
Scalottia · 28/01/2024 08:00

Your posts make no sense OP.

Report
AnneValentine · 28/01/2024 08:00

Flatleak · 28/01/2024 07:59

Of course investments can be accessed. I'm starting to think you don't know what it's like having money OP.


I'm wealthy. I'm 30, mortgage free, on a house in London. I still have savings. HTH.

You think I could walk in the bank tomorrow and withdraw money from our investments? Ok 😂

OP posts:
Report
Please create an account

To comment on this thread you need to create a Mumsnet account.

This thread is not accepting new messages.