To think you can’t save if you simply don’t earn enough?

[MyAmberBird]

A lot of advice around saving focuses on habits and discipline but it feels like that only goes so far. If someone doesn’t earn enough to cover their basic living costs with anything left over, then realistically there’s nothing to save.

AIBU to think income is the limiting factor here? I don’t think habits play as big a role as people like to think.

Ooh this won’t end well, some posters think that everyone can afford to save and if not they are lazy

Well, if you barely cover your living costs, then of course you can’t save.

But, these times, generally, are normal and pass. Then you can save. 👍

Well if people insist on having a mobile phone and eating avocado on toast of course they can't save.

For some income will be the limiting factor, for others it won’t be.

I think there are two points:

1. who are living hand to mouth and do not have the luxury to be able to put money away for a rainy day
2. those who have disposal income but don’t know how to budget or even want to budget and blow their money away each month

I don’t think anyone expects cohort #1 to be able to save money.

Told you so OP! 🤣

YANBU. I also think if you're just about able to afford your essentials plus a couple of optionals then cancelling them to save a tiny amount makes life worse. I read 100 books a year via my £10 Kindle subscription. Things like that are worth more to me than £120 in savings at the end of the year.

This ^

Many people are constantly having to add to a credit card for essentials then paying it off and repeat

But many will simply do not understand, or want to understand what it like to not have enough money to cover essential living costs

didntlikeanyofthesuggestions
Well if people insist on having a mobile phone and eating avocado on toast of course they can't save.
you can have an old phone with a low bill and buy a net of avocados in your shopping for next to nothing.

op Id agree with you- my whole wage would be twice what some people I know save! I put a fiver/ tenner onto gift cards monthly in case I get stuck for food or petrol and also I have gift cards to get one haircut a year and go to the beauticians near Christmas. I’m on mw and put twenty euro into an account weekly but even before it’s built up at all I’m using it for something for the kids/ to fix something. Goal is to get a better paying job somehow

Lolz.
But it's interesting that some do think a mobile phone is a luxury: I would really struggle without mine as I do a lot of essential everyday life admin on mine

Also it can be more expensive when you're poorer. Things like bulk buy deals cost more upfront for example. Or only being able afford cheap shoes that don't last so long so you spend more money replacing them over 5 years.

I’d suggest there is a third point - where saving small amounts makes no difference to someone’s probable and significant financial risks. Such as:

• a massive hike in rent from a landlord who simply wants to maximise profit
• redundancy/job loss/ period of unemployment
• ill health impacting ability to work
• ill health of family member/caring responsibilities impacting ability to work
• hike in interest rates impacting mortgage
• forced retirement with inadequate pension

These are significant life events that are often unforeseen and over which people have no control, Savings bits here and there doesn’t help much when there are months of rent/mortgage arrears. People can go from secure to temporary homelessness very very quickly. And no one thinks it will happen to them.

I agree with conversely attired, it’s pretty much always possible to cut back somewhere but you can’t save at the expense of small happiness in your life.

That said I live on a very low income and still save. When times are especially hard it’s £10 per month.

One persons essentials are often luxury or unnecessary to the next person, whether it’s cigarettes, haircuts or car repayments.

I'm very low income but I still opened a L-isa and pay in £2 a week. I try and sell one thing on Vinted each week to cover it. It'll pay for something when I'm 60.

When I'm better off I'll up my payments ☺️

It will always be a split of people , and everyone prioritising different things.

for example some people will say they need a new car to get to work , and so justify a monthly payment/ others will think Thais a waste of money.

i personally put £150 per month away for a holiday/ others would say it’s an unnecessary expense

i also pay £100 per month for a maths tutor. Some people would argue it’s a good use of money / some would say it’s an unnecessary expense and could be money saved each month.

I agree with bills going up it will get trickier.

I have been putting £5 per week into a stocks and shares isa for two years nearly. If you compare it to others savings on here lots of people might say why bother …. but I’m pleasantly surprised at how quickly it’s grown.

I think lots of people struggle to save , but I also think that some people could cut back somewhere if they really had to

I take your point but saving small amounts if you are able to can help with unexpected expenses like a plumber fee, blown tyre, or any other unexpected cost.

And we don't have a landlines so need a mobile phone....

Don't all schools expect parents to be on apps?

Yes. I need to top up DD’s dinner money account via an app, her timetable is on an app, and that where messages from school are delivered to.

Ok, I'll use a relative as an example. They live very precariously, which is stressful. It cannot be fun at all.

As such, as soon as a little unexpected money comes their way (e.g. very small inheritance from a relative, christmas money from grandparent, left over money on the odd month's wages) they spend this on complete non-necessities.

But then they are always borrowing from Peter to pay Paul and rely on people stepping in to get them out of trouble for the mundane things.

They would 100% argue that they simply cannot afford to save because their rent has gone up and their car has gone wrong etc.

I think it becomes a vicious cycle of eeking out precarious existence. Then some money goes their way and wanting a treat, because why bother schlepping about if they can't have a small treat, right? And then going back to eeking out difficult existence.

It is frustrating from the outside, especially for us who are fortunate enough not to be in survival mode.

So I think a lot of people COULD save money, who don't. But the money that some people would say is wasted brings a bit of joy and reprieve.

And frankly, I can't really begrude people that. But it is only because others (family or social supports) step in that people carry on with it.

Absolutely this

However Mental health issues / ND/ trauma all cause spending problems and its not really addressed unless someone seeks help

Thread after thread where posters have 3 /4 kids
DH on NMW
Op works very PT and debt accrues
The cycle continues

Why we dont teach finances in schools I dont know

@MyAmberBird yes AND no.

Life is about choices and making the right ones.

There is the obvious like making sure you're living without your means. A friend of mine claimed she couldn't save and was poor every month yet had bought a sofa that she "needed" and a tumble dryer that she "needed". In reality she didn't need either but was paying for them monthly on finance.

Obviously thinks like smoking, vaping and alcohol are technically luxuries.

The biggest thing is living costs. I live in an expensive area and a friend of mine realised they could earn the same but live in a cheaper part of the UK so upped and moved. Their rent is so much cheaper yet income is the same. They moved about 5 years ago and have far more disposable income.

But yes, I think there are people who have cut out all luxuries, living as cheaply as possible but every penny is going on the basics.

Well done. That's a great habit to start. It may not feel like much now, but it will soon start snowballing, especially as time goes on and you can afford bigger contributions.

So many people don't start savings bc they think it's not worth it if you only have a few quid spare, but it's starting the habit that's the first step. Then you start building on it, and when you start to see results it actually becomes addictive.

A LISA is a good choice for this as you get your tax back from the government as a nice monthly bonus, and it's not freely accessible so you can only use it for a house deposit, retirement savings or if you get seriously ill, no frittering it away on a rolex! So you can look forwards to a nice retirement bonus.

If you dont have spare money you cant save. Many years ago l was a single mum, living on benfits and part time work, l couldn't even afford to eat and heat my flat, no way could save. Just made sure kids were ok.
Then life got better and l could save, managed to get a good savings buffer.
Last year my DW had an accident, she cant work, im now a carer for her, we are using our savings to top up carers and attendance allowance. They will be gone in about 3years and then we will get more benifits once we go under the 16K...its all swings and roundabouts, although l wish we had spent our savings having our best life.

I think that's many people. There isnt much left after bills and some spending money