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?

This is so clearly a windup post and OP I'd most likely a teenager. Or just a bit thick.

She's made so many bizarre statements. Investments not being savings - of course they are, just higher risk than cash and some are less liquid.

Claiming they wouldn't be able to sell investments as quickly as getting cash from bank if needed. Would be very strange if wealthy people didn't have some of their investments in exchange traded shares which can be sold in less than seconds during trading hours.

Claiming people with high salaries don't get made redundant. It's literally exactly the pool of people who get made redundant very easily, or "managed out", or pushed to retire early. Would only be different if they were business owners.

Etc....

I’m struggling with this thread. I’ve never wondered how the wealthy manage their money, savings or otherwise. I don’t have savings because I think that’s the example set by the wealthy, it’s in my personality to worry and I feel better knowing I can cover my bills if I can’t work for any reason, and if there is some huge unexpected bill. I feel like I’m looking for some extraordinary insight from this thread (I don’t move in wealthy circles) and I’m not getting one.

Honestly, you do you and I’ll crack on with my life.

OP.... Are you still calling yourself wealthy?

You genuinely think you are, don't you.

Actually, a wealthy person may well have to worry about their boiler repair. They can be asset rich but cash poor. A landowner with lots of land and a large crumbling house is wealthy but may not have much cash to hand, A boiler repair for their house would be substantial and could mean the household taking cold showers and shuffling around in layers of clothes until the money was found to repair the boiler.

I suspect OP you are comfortably off, have a good salary/income and a pretty frugal approach to life but in reality are not wealthy.

What you and others haven’t understood is that my post is literally about the idea that we need savings for small costs like that. The fact that when a wealthy person says I don’t have an emergency pot someone will almost certainly say “but the car”. “The boiler”. That it’s impossible for someone to have an income where such small costs wouldn’t feature.

Thanks for explaining. I think we did get to this, about 6 pages ago. I understand that the cost of a boiler is negligible to you.

So to be clear, you think we don't understand that you are so rich, that your cushion is so sufficient, that there is no possible unexpected change or shock or event that could influence your way of life. (Actually I think you're saying that you would be happy to flex your way of life in this situation, but it would be no biggie really).

I do get this.

But the point you are making is still weird. Seems to be "why would someone use the word savings for these small expenses unless they are a right povvo?" This is just a weird and mean point to make.

I prefer the broader discussion about risk appetite and asset liquidity - I have learned from other posters here, so would like to say thanks to them.

Eh? So if you wanted to go on a nice holiday, because it would exceed one pay packet, you couldn’t go?

We don’t go on package holidays, but the company that bills our trips bills us in one go. Summer balance due shortly is £35k. I live within my means, and that includes £50k trips. Expenditure is ‘lumpy’ doesn’t mean you can’t afford it.

Are you new to this wealthy stuff OP?

Fuck me. I've been out for lunch and back and the op is still here banging the drum about how untouchable they are 😂

Same 🤣

I don't think OP sounds insecure or a social climber.

I think the inferiority complex is spot on. She IS wealthy. Are you listening people! Look at her now. Etc.

Definitely financially dense on the basis of what she's written here.

As PP says, if she had any of this conversation with a wealthy person, she would look a real tit. Not that she'd know.

Ooh, page 33 of "I don't need a savings account". Must be a slow day chez OP.

To be fair, she is the gift that keeps on giving.

OP

Your income is less than £13k pcm. If you can afford to pay out £100k+ then you must, by any standards, have money saved. That money is commonly called “savings”.

are you trying to argue that it’s not “savings” because it’s in your current account? Baffling.

It’s not even about folk believing that she is wealthy. What has absolutely incensed her is the suggestion that her DH may be hiding assets from her. What isn’t clear is why it matters in the slightest if a few strangers on the internet think this. Secure people don’t care much what other people think, much less total strangers.

Also wealthy people really don’t bother with boiler insurance.

I had it years ago when money was tight and it was a total pain on the arse. Could only get the providers repair person out, with a three week call out delay.

far better to just pay the person who can come and do the job quickest.

Wow! How on earth have the good people of MN managed to generate 33 pages discussing the fact some insecure show-off has enough in their current account to fix an imaginary broken boiler?

This thread is definitely one of the most bizarre I’ve ever seen.

Stop everyone and behold!

Whether you have actual real savings in an actual real savings account; savings-that-are-most-definitely-not-savings like OP, or a piggy-bank....

Yes that's very interesting.
The other Op was the same
She was so wealthy and clever, if only you were too.
Then DH is doing this little thing with his money ...

Investments and pensions are savings, as is life insurance and disability insurance. I'm afraid I don't believe you're wealthy if you're this financially illiterate.

I don't know anyone comfortable who doesn't have at least a few 10s of k in liquid assets. Covid and brexit taught everyone that you might want to get out of the city or country fast for an extended period. The truely wealth people I know (multi millionaires) have more so they can book a private jet this afternoon if they need to get home from their holiday house, get to a client or their business now, or replace the car. Having to wait for assets to liquefy means you're a bit skint.

I wouldn’t define the op as wealthy a high earner yes but not wealthy

the family that I know that are wealthy and they are multimillionaire wealthy don’t feel the need to brag about money how much their holiday was or credits card limit they are very humble and as it’s self made money they feel very fortunate.

They have numerous properties they rent out and various businesses. As far as I am aware they have investments as well as instant access savings and keep a substantial amount of cash at home I only know this as was there at a weekend and one of their kids suddenly needed cash and the banks were shut. I was also at the vets with her and she transferred into her current account from her savings account I presume it gets more interest than the current account she doesn’t bother with pet insurance despite as a family having 12 dogs because she can afford to pay whatever the cost

Maybe I should advise them they are doing it all wrong or they aren’t wealthy at all as according to the op wealthy people don’t have savings accounts only pensions and investments

I think you will find most people have an emergency pot OP, or at least a budget/money earmarked for maintenance/repairs. And your boiler mightn’t cost much to repair/replace but a larger house, etc -it’s all relative.

Happy to be defined as whatever you want. By HMRC’s criteria we are. If you have another threshold I’m fine with that.

Insurance is definitely not a saving 😂😂

Incensed is a reach.

I just think wealthy people have money, assets, access to credit and solid security - and to quibble over whether you refer to some of that as savings or not is so weird and unnecessary. The point is having the ability to cover unexpected costs, be cushioned from disaster and be able to pay for the things you need and want. Which is the purpose of...savings. This ubiquitous broken boiler won't register as risk or emergency to the OP, fine, but the principle is the same regardless. Whether you keep that cushion in a savings account or it takes some other form doesn't make any meaningful difference. A significant cost comes up (obviously not the paltry small change required for a boiler, we get it) and it isn't a problem. Because a proportion of that large income over the years hasn't been spent - it's been saved or invested, and the money keeps rolling in. You don't have to call it an 'emergency pot' but the idea is that you're covered for any emergency that arises. Whether that's putting money in a separate account or just letting it accumulate or investing it - or some combination. I still don't know why it's so important to the OP to tell everyone that wealthy people can easily afford new boilers and to claim that having a lot of surplus money is significantly different to having savings.