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?

Oh come on... do you really believe that the majority of mumsnet earn six figure salaries yet still have time to post all day 🤔

I wouldn’t go anywhere near a private hospital for treatment of aggressive cancer. Absolutely no chance. Why would I? Multiple emergency issues with pregnancy, broken limbs, and a child with an immune condition has taught me that the NHS is always best for that sort of thing. Minor surgeries we have private healthcare which does cover it.

Even if we had savings they wouldn’t be for that sort of thing.

Op, I know 4 extremely wealthy people and they all have numerous types of savings which definitely includes plenty of cash handy but money invested also.
One lot do buy brand new cars but they behave in the most tight parsimonious way and constantly talk about money and budgets etc.

This. With bells on.

I am the daughter of a multimillionaire (multi multi multi) father, and a multimillionaire stepfather and mother. My ex is in the top ten of the STRL. Multi billions.

OP you literally have no idea what you're talking about.

Me? I can take no credit for my family's achievements. I do a bit part time in a charity. DH is 6 figures, but we have (too many ) children and live a very normal life. When I inherit, we won't. We have no mortgage now and pay a notional rent in one of my parents properties. We're about to use hundreds of thousands advanced inheritance as a house deposit.

My parents have worked hard and made savvy investments, as well as having bank savings. My ex, one morning, looked at his computer and had made $48m over breakfast. That's someone who doesn't need an ISA. Not someone on £250k salary who is completely dependent on that monthly payment and spends it all.

You sound a little silly OP, you genuinely think you're educating people, from a position of wealth. You're really not. In both aspects.

It may not be what you are referring to, but it is what everyone else is referring to.

It’s a Sunday morning. People with high salary jobs get a Sunday morning off. I’m also - ironically - in a hospital bed bored.

I think OP you need to differentiate between short term savings and longer term investments.
you need both - one to cover incidentals / rainy day fund - new roof etc; and one to cover longer term growth.

If you have a high income and haven’t had a good financial advisor explain this then you are spending money wrong.

Precisely this
Imo you can always tell someone who has no money from someone who is wealthy.
The person who has no money defines their wealth as what they can spend 😬

We have a mix of savings and investments but there's enough easily accessible cash to get us through a year of neither of us earning. We're very lucky to be in that position. I wouldn't feel secure if I couldn't easily replace an income stream long enough to give us a breathing space.

I'd say you're wealthy but not secure, OP. I'm not sure why you wouldn't have some money that's easily accessible without onerous notice requirements or penalty for early withdrawal

I don't think savings and investments are viewed as the same thing, are they? They're all ways of saving in a sense but investments basically involve buying something else with your money in the hope that it will grow in value and you can sell it back or on at a profit, whereas savings are money put aside for the future.

Only they’re contradicting themselves. Because on the one hand apparently you need savings for an emergency yet the type of “savings” aren’t suited to that.

What is the point of this thread? Are you wanting recognition for living in a 7 figure house?

Investments are savings. I have money invested in the stock market, I’d still consider them savings. If I wanted to I could access it as cash.

one of my friends is exceedingly wealthy, I’m talking multi multi millionaire. She has cash savings, she has investments, she has income from multiple (20) rental properties and holiday homes. She has no money worries but she definitely has savings.

and I’ve known her see a house she likes when she’s been on holiday and rung up the state agent and bought it. Paid cash (bank transfer). So yes sometimes you need 300k of easily accessible savings 😁

Just goes to show that you don’t need to be able to string coherent sentences together to earn a high salary. <misses point>

Ah okay, so the thousands of people waiting in queues for (slash overwhelming) NHS services who can’t afford private (which you can), should still make room for you in the queue regardless.

What other services proved by our “welfare state” do you think you should be entitled to on a salary of 250k plus, out of interest?

To me someone is wealthy if they don’t have debts - for example their house doesn’t have any kind of mortgage. Everything is owned outright. They may also have inherited wealth in the form of properties or assets such as jewellery (for example). They have enough passive income from investments that they don’t need to work, even if they choose to.

Being rich is having jobs that bring in enough money each month to afford things without worrying but there might still be a mortgage on the property and other debts on expensive items such as cars. There may be some investments that bring in a passive income but perhaps not at a level yet to stop working but overall life is pretty worry free in regards to the more basic stuff like paying for groceries or replacing items.

Well I do!

Love wasting time on here.

This sort of OP makes me laugh. Total wind up merchant.

Oh dear 🤦🏼‍♀️ you really are living in cloud cuckoo if you believe that you are financially safe. Everything you quote: investments, pensions which maintain your lifestyle could go tits up tomorrow.
What was your financial situation in 2008. I’ll leave it there.

All of this.

Except the OP isn’t trying to educate people, she’s just enjoying understanding money better than the plebs - the silliness coming from the fact that her understanding isn’t as good as she thinks. Her belief that people on 200k salaries not often being made redundant being a case in point..

Here's some education for you OP courtesy of Dickens' Mr McKawber:

Annual income 20 pounds, annual expenditure 19 [pounds] 19 [shillings] and six [pence], result happiness.

Annual income 20 pounds, annual expenditure 20 pounds ought and six, result misery.

====

I hope you get better soon (noting you said you're in hospital)

If you wanted to buy a nice new car OP, how would you do that?

I dont need instant access to cash - a credit card would cover any emergency spending. Of course there are emergencies - you hit a bad pothole one night and need a car till yours is fixed, the drains block because it's full of tree roots, you have to pay the excess on one of your insurance claims. So I understand what you are saying - but I still have savings and investment and I can get money from some of the investments pretty quickly if I wanted to buy something expensive.

The truly rich I dont understand. Paying a couple tens of thousands to manage a yacht you only visit a few times a year, having a private plane, playing polo are things I hear about but I dont know what else the rich get up to and dont really care.

This thread is so tedious when all it boils down to is the OP using a different definition of 'savings' compared to how the majority of people in the UK use the term.

In my experience, people on hefty salaries don't have savings, and that's because they spend it all on expensive houses, luxury cars, holidays and general extravagance! Whereas I don't have alot of savings (nor a hefty salary) I always want to have something put aside for a rainy day.

To those saying investments are savings, no they're not! Savings you can access whenever you need them, investments the money is tied up, so won't help you if your house needs repairs etc.

The way the world is heading at the moment, this point is very true!

I think we pay a huge amount into the national healthcare and are therefore absolutely entitled to access it. If you want to refund my contribution and remove the requirement that all practicing doctor must work for the NHS we can talk. But whilst the best doctors are working at Great Ormond Street that is where my son goes. If I pay into it I have as much right as anyone to access.

Re other services, all the ones our tax and national insurance contributes to. All of them.