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?

Press the ‘see all’ button when you are not stoned and have a read 🤣.

I don't know why I'd ask again, but just in case it starts to make sense...what's the meaningful difference between having those tens of thousands in a current account and having them in a savings account? It's surplus money that hasn't been locked up in investments that you'll use to pay any unusually large expenses eg a big holiday or some kind of emergency. Why is it so important to you to say 'oh it's not savings, savings are for poor people' when in fact it serves the exact same purpose as savings, just hasn't been moved into a separate account? It's still the same thing!

Also...is your position exactly the same as that poster outlines? Because you've said you do have pensions and that a salary is the main source of income. So not exactly the same then??

So you’re going to tell me I’ve contradicted myself but won’t quantify that? Nah I’m not searching for a needle in a haystack. Explain or trot off.

I'd suggest it's where you said 'my position is exactly the same' in response to a post describing people who live off passive income with no pension or salary (or their salary isn't their main income) which contradicts the other information you've given so far.

The salary is the main source because why would we take an income from investments if we don’t need to? It’s much like rental from flat. We don’t touch.

If husband or I chose to stop working that would change, we would start taking an income.

To me saving is money ring fenced, that you don’t touch unless there’s an emergency. It’s not our month to month spending money.

I meant my position in that I agree with what she’s saying. Not our position in that financially we currently have the same set up 🙄

Right, well that's not everyone's definition of savings then. Lots of people put their surplus income in savings to generate interest, to be a buffer they might never need, to set aside for luxuries or just to organise their money. The accepted definition of savings is not 'money you don't ever touch'. It might be for some people, but for many it's just extra money that they might spend on a holiday and replenish for example. You keep yours in your current account, but it's doing exactly what lots of people's savings are doing.

Exactly this.....too funny and so entertaining!

So we’ve established there isn’t a universally accepted definition of savings. What a fucking waste of time.

So you also misunderstood. Sooooo funny.

Well that's odd because your phrasing was 'my position is exactly that of the people you know'. The poster had described those people's financial position. I don’t know how anyone would read your comment as anything but you saying your setup is the same.

Anyway, I get it now. Your definition of savings is really weird and not in line with most people's understanding of the term, and that explains the whole thread.

No. We have established that you have made up your own definition of savings which no one else seems to have heard of

We do fairly well. Gross household income is in ballpark mentioned. We must live quite differently because we budget everything in the family finances like we're running a business. We save every single month and allocate funds for cars, house, DC, holidays, pensions and build them up so we can comfortably pay the out goings.........Our savings are nearly all offset against the mortgage to max the interest rate benefit and we keep a slush fund for emergencies. Mortgage is also our only debt and I want to chase it down using my savings on next remortgage
We know we are making hay while we can but I do worry if one of us got redundant then it would likely take 6 months to find a similar role.
We have horses, one of them was very ill. The insurance wouldn't have covered all of the surgery bill but because I keep a 'shit horses fund' I could just pay for him.
I will say apart from our house and the horses we are very lemonade in our tastes. No flashy cars, no private education. Horses get the manicures every six weeks. I haven't had one in years!!!

Well, there kinda is a universally understood meaning of the word savings.

What is amusing everyone is that you insist you don't have any. As you fall under the definition that 99% of people recognise.

Oh, and that you announce you are wealthy, despite showing quite astonishing financial illiteracy, because you found an article on tinterweb. That is also muchly fun to read

(Is there a "follow poster" option?...)

It was a fucking waste of time though, and I don't even have the excuse of being stoned.

Op are you ok? This is really odd behaviour and I’m concerned. Walk away if you need to

HMRCs definition of wealthy doesn’t really count for much though does it? £2m of assets isn’t a whole heap nowadays…. That’s why they have the HNW unit, for those with > £20m of assets. And while that’s not what I’d call super wealthy, it’s certainly a more select club!

The run-of-the-mill Wealthy Unit deals with around 750,000 tax payers, or around 1 in 40 of us, so not a particularly select club. There’ll be a few on most streets I expect ;)

Oh that comment. Yes - as in their position savings and it being spending money.

This bit “The wealthy people I know don't have cash savings but they do have tens of thousands in their current account! Because what would be cash savings level of cash to normal people is just spending money to them”.

@WillYouPutYourCoatOn there isn't a follow poster option. Although I have been followed and called a drunken harpy (haven't drunk booze for years so they did some searching!! 😄
I use to love a bit of Xenia. Not seen any posts recently.

Having read all of OP’s responses, I agree with her point that there is no need for ‘an emergency pot’ in that they have sufficient monthly liquidity to cover anything, but should anything major happen they have invested assets.

I think OP may have been able to articulate that more easily without the drugs.

FairPlay to you @AnneValentine for sticking with the thread.

FWIW, I don’t have ‘emergency money’, but enough money not to worry about lumpy outgoings.

Oh for sure. I live in a town full of them.

Well, I hope you can see where the confusion arose and understand that this has been a recurring theme throughout the thread. Now perhaps you understand that for many people, savings are a place they keep their spending money and it's not other posters being too stupid or jealous to understand the idea that wealthy people can afford more stuff than non-wealthy people...which is effectively your entire point.

Thank you! It’s actually proved vaguely useful as it’s kept me awake which I was desperate for.

And thank you for seeing between the morphine haze and recognising the point I’m making. Which no doubt I could have made better but also wouldn’t have bothered with on a normal day.

“enough money to not worry about lumpy
outgoings” is perfectly put.

Only when I specially have examples
of spending money they said of course it wasn’t the same. Is it really savings if you know you’re spending it imminently and there is never an accumulation of funds?

Does anyone know if the £2 million assets threshold for HMRC includes pension savjngs??