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?

If you do actually want an example of what savings are for, OP -

Someone I know went on holiday and then got stuck abroad when something political changed. They were expected to leave their hotel (six of them - two parents, three kids, plus grandma) within the subsequent four hours.

In that time they contacted the British embassy, their travel insurance company, the package holiday provider, their bank, ABTA etc. Insurance were happy to pay for their accommodation and a return flight once flights resumed, but they would only reimburse - no upfront cash. No other recourse.

They spent their savings on hotels, food and flights. It cost them approx. £9k, and they eventually received just over £7k back.

How would they have done that without savings?

But they do have savings. Pensions are savings, same with investments. Do you specifically mean cash savings? I hardly think people in your example would even consider a couple of grand ‘savings’. It’s just money. If they need extra, they can just liquidate assets. However, people who don’t enjoy that level of financial comfort would struggle with an unexpected bill without some put by. I don’t really see your point here.

The OP is saying, I think, that she'd have that £9k available to spend in her current account as that's where she keeps her cash. If it's in an account labelled 'savings' you aren't wealthy but if it's just in your normal account then you are. According to her definitions!

I find it shocking sometimes that those on high incomes in the arts live to their means and then find it all comes crashing down when their wages stop (for whatever reason) and they can’t pay the tax bill. I realize I was old when some money started to come in from a hobby I had, but I made sure I didn’t spend the tax money as I knew it would come round. There must have been a time when the money started to come in and they weren’t used to having it, when they could have started putting enough away. Just assuming you’ll make enough in the next year in an industry that is so notoriously fickle is careless. Unless there’s something I missed and they can have had taxes they couldn’t have predicted.

The thread is a joke but in fairness it is mildly amusing.

However, imo really wealth people don't boast about spending 20k in Disneyworld or Disneyland.

The really wealthy people can afford to buy either, not just visit! 😉

Did I say you’d said all those things?

But you very much set the tone for this horrifying ‘I’m richer than you’ thread.

I'm actually disappointed that by the HMRC definition I'm not wealthy.

I grew up in a family with one average income so maybe it's just that I feel wealthy compared to that....

I've only read the OP posts, I'm not sure why anyone is actually bothering to engage with them - they're having a great time winding you all up.

But she also seems to believe that her "wealth" means that this stuff would never happen to her - "it won't break because I'm rich enough to have new everything" and/or "well everything's insured so it's fine." I'm just pointing out that these things do sometimes happen, and spare cash is often needed, even if just until insurance money comes through.

These are all very good points. We are all insured to the hilt but if something very unfortunate were to happen, insurance would take at least 6 months to a year to payout and what would happen in the meantime if we had no savings? Our monthly expenses are very high.

This reminds me of that poster ages ago who would start threads saying everyone could be a SAHM if they tried hard enough.
She and her DC laughed at DC walking to ASC.
Was oh so financially savvy and clever not
She exposed the fact her DH was fiddling his tax and all her threads had to be taken down super quick as she was easily identified by everything she posted .
So naive

Op seems to think we all know her and that every thread is about her 😬
Bet the DH has a shit ton of hidden savings

1. the discussion is about needing savings. I don’t believe those telling me I need savings for an emergency have that eventuality in mind.

2. credit card. We would always use credit card for a situation like that. Partly because of the assurances that come with credit card purchases - we never use debit cards abroad. Even if one of us was paid during the holiday we would still use credit card.

Because they are telling you they are.

Of course it happens to us, but we have the cash flow each month to cover it. It wouldn’t require us to have savings to cover the things talked about here. Apart from the extreme cases - aggressive cancer was literally suggested - but we wouldn’t ever have savings for that anyway so it’s a moot point.

Yes - I mean cash savings. Exactly that.

So OP you’re saying that you can’t imagine a scenario in which you need to pay out more than your £13k per month income?

And there we have it. Just like that. Exactly the kind of sentiment that led me to start the thread.

If I had 13k a month coming in id make sure I didn't have a mortgage!

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

What a bizarre statement.

In times of financial crisis some investments may be " frozen" -
Commercial property funds for example may be frozen for 6 months but generally investments are accessible within a few days, surely money is accessed online I hardly ever go to the bank.

It is good practice to have accessible cash in a GIA and /or invested in a short term money market fund in order to take advantage of dips in the market.

OP you should consider educating yourself on investments and look at the flow chart recommended by expert investors.

No - I’m saying I’m not sure why we need a pot of cash savings to cover things like a broken boiler. And that fact that we don’t must mean my DH is squirrelling away money or I’m lying.

Yes. In my current account, there is money to pay my child’s Uni fees next week, money to pay for a holiday, money to get some work done on the house, money to pay school feed, money to fix the boiler if needed, etc.

I could transfer this money to a Savings account and so technically, I’d say I was paying for the above from savings, or I could do what the OP does and say the money is just there in my current account.

And while I have this money available, I am also fully aware that life can change in a flash, stocks and shares can fall dramatically, assets such as commercial or residential rental property is fine as long as the tenants are able to pay their rent and there is continuity. Nothing is forever.

I can only assume the OP is trying to justify to herself why she doesn't need to keep cash in a savings account.

If you don't feel you need to keep a cash pot handy, then don't. But most people do feel the need. I work with wealthy clients all the time and one of my clients likes to keep around £1m sitting in an instant access account - 'in case I want to book a holiday or change my Aston Martin'.

Well then OP go and spend all your cash sitting in your current account and see why you might need savings! You are being ridiculous here.

None of that money is in my current account and nor did I say it was.

If you had £2000 in your bank but you knew the majority was going out in the next month would you call that savings?

Is your £13K pcm after you've put money aside to pay your tax, or after tax (if you're not self-employed)?