If you could save this amount each month, would you think that was in a decent wealth bracket?

[Thatsmio]

My dsis breezily said in conversation yesterday that they’ve had to reduce savings from 1.7k a month to 1k over the last few months as birthdays and bills have all come at once.

she’s not someone who boasts or is unkind and it was said in passing, like she was quite worried about it. AIBU to think being able to save even 1k is absolutely loads?! Let alone 1.7k? Or are my ideas about savings utterly shit….? I save around 250 a month and that’s only when I feel I can!

Council tax £31 (I'm disabled, single, so get a discount)

Is this a typo? How is your council tax so low? Average council tax is ~£180 a month and the single person discount is just 25%.

I have three types of savings one for annual expenditure, house insurance, car insurance tax, MOT and serviceing plus an allowance for parts like brak pads tyres etc, Christmas birthdays house maintenance and renovation, family treats my childs' clothing school trips etc, ( my clothing comes out of what I give myself as a monthly spend) family treats and a small holiday to pay for this I need to set aside approx 575 a month, some months nothing on the above list occurs others it will be above 575 but overall by 31/12/2025 the balance should be 0 or above, this is in a linked savings account with my current accont

then there are savings for emergencies ( a big car bill replacement of a large appliance like freezer or boiler) and 3 month living expenses ( i have an indexed linked occupational pension so do not need more than 3 months this will also enable me to buy my next and subsequent car for cash not on finance, this account balance should increase with time and is in a notice savings account so getting decent interest

finally there are savings for the future daughter at uni or maybe a handout for house deposit these are generally in investments /ISA not savings accounts

all three of these are a line on my budget together with bills and allowances for food travel and personal spends

@JaninaDuszejko you get extra discounts for low income some people will actually be paying no council tax, anyone living alone gets 25% discount further discounts are means tested

@cottagecheeseisnotcheese I was unaware there was any other discounts except the 25%, never mind a discount that cuts it down to such a low level. My council tax is ten times the OPs 😭. Not that I'd get a discount but it might be worth checking if MIL can get a discount since she's disabled.

Many many people in the UK live paycheque to paycheque so yes, in the grand scheme of things, she's doing amazingly. It so depends on what you're used to, what your expectations are, what you're saving for.

There’s been times in my life when saving £300 felt good. Now we usually save £1000-£1500 but have had lots of expenses and know dh’s job is unstable at the moment. We could afford a more expensive house in theory but the next jump seems to be to houses where old people have died (so they’ve become available) and need work or newbuild that are similar size to what we have despite being £200k more. Or they come with a massive garden that we know is too much for us. We prioritise travel.

So my first reaction was 'she is loaded and insane' however, in my head I would only call it savings if it is literally put away and doesn't have any purpose earmarked for it in the foreseeable future.
If eg she 'saves' but that money is spent on house repairs, emergencies, holidays, birthdays, random one off expenses like new cars etc then imo that's not really saving, it's just budgeting IYSWIM.
Does she have/want children? If they are planning but not got them yet then again, saving to cover maternity/childcare etc is just good planning if you can manage it.

I would be ecstatic if I could save that!

I earn a decent amount and was putting away approximately £900 a month but I am single and was a lodger. I have my own place now so that will come down significantly.

The thing to think though is it really depends on:

1. Income
2. Level of frugality.

Some people lead a very frugal life and thus can save a lot more. I am not particularly frugal but if I was could definitely save more.

Also what is their saving percentage? 1.7k could be a 2% saving percentage which is pretty more. Whereas £250 could be a 40% saving percentage for somebody which is pretty epic.

I would just focus more on what you can put away and not others that may have a completely different income you.

You cannot and really should not compare without knowing their income.

I had to get over that too. I am significantly behind my friends in terms of asset accumulation (I don’t have a mortgage for example) but I have been properly single my whole life whereas they have had blocks of dual income / no dependents which allowed them to consolidate their resources. My few single friends who do have property portfolios, investments and enjoy a nice life are either super high earners or super high earners who are also very frugal (one of my friends who is a single woman earning well over 100k a year and is a landlord of multiple properties almost never takes overseas holidays and doesn’t spend too much on socialising, clothes, self care etc.) So I do not bother comparing my selves to them - just try to compare myself to where I was 1, 5, 10 years ago and try to make sure I am doing better.

I need to know how you get your energy and water so low - ditto mobile phone!

After buying the assets we need/want, we've been building an emergency fund that covers over 12 months of outgoings 'just in case'. Not everyone can do that, but we can and do. We've had to sacrifice other things to commit to putting away a portion of our income every month.

It's really important to think of savings as relative to not only income, but also outgoings, budget, and leniency of personal sacrifice. If all you can manage is to save a tenner every month, then that's all you can manage. If you can sacrifice £20 you would've usually spent on non-essentials, to go into savings, and you're ok with that- great. If you want that £20 to spend on non-essentials- that's fine too.

Money and financial situations are difficult to talk about, but it's all relative. Your sister might feel unstable or concerned that she can't save that extra bit of money this month, that's fine. Just as you would be if you couldn't save your extra bit. The fact that the numbers are different doesn't mean much.

@JaninaDuszejko regarding your MIL it depends how disabled for council tax reduction it is pretty much you need PIP DLA etc but claiming further discounts on grounds of low income is fairly straightforward provided your savings are less than 16,000 for some help you have to fill in frms regarding income rent pensions mortgage repayments etc but it is on a sliding scale so it is worth applying evn if you only get some of it reduced I mean going from 150 to 120 a month is a saving. Lots of pensioners don't apply for means tested benefit but if you only get £1.25 pension credit a week it can have knockon efect of being able to access social tariffs for broadband lower or no TV licence payment etc

if she has savings above 16K is it a waste applying

My son saves a thousand pounds a month because he is in the military so his rent is next to nothing. He stays with me for free at weekends at I paid for his car and his driving lessons etc. His dad is currently paying his phone bill as it was a present and he gave him £500 towards his car insurance. It was very expensive as a new driver and he is paying the rest.
So I don't really think that is achievable for most people if you don't have cheap/ free accommodation/ various bits of financial support from family and not many commitments. I don't think my son will always be able to save that much but he can at the moment due to his circumstances. I don't have any money in savings but I could always sell my house and downsize if I was desperate.

@OnlyFoolsnMothers Unless you live under a rock, then you would know people on low wages get top ups. So no I was transparent enough thanks. 😂