To think that if you’ve got savings, you’re not poor?

[CleverTealGoose]

I’m not saying that having savings automatically makes someone wealthy or financially comfortable, but I do think there’s a difference between being poor and having money set aside.

If you’ve got savings that you can fall back on, even if you’d rather not touch them, surely you’re in a different position from someone who has absolutely nothing to fall back on?

I sometimes see people describe themselves as poor or broke while also mentioning that they’ve got thousands sitting in savings accounts.

I appreciate that savings can be earmarked for particular things but ultimately that money is still there.

Like there is a difference between being genuinely poor and simply not having much disposable income.

Yanbu. It's the same as the people who pay for private school but say 'they make huge sacrifices and drive and old banger.' Yeah but you can still afford the £25k a year fees, which most people can't. These people are not poor, they just prioritise their money differently.

That's fine and justified, but you're not poor. You have money you're just choosing not to spend it on coffee.

Hmm, I see your point about generational wealth. But just because I might inherit half of my mum's house in 30-40yrs time doesn't mean I can't be poor right now in the present. Half of her property won't see me through retirement and it'll be too late (hopefully) to help my children with university, right now there is no fall back.

Why?

I earned my money and I consciously decide how to spend it. A decent share goes into savings and investments, and what’s left after the things I have to pay is my fun money. When that’s gone, I’m broke.

I wouldn't say having a few grand saved makes you comfortable. That's the next car, or the next boiler. And when that goes, they're down to very little.

That’s not being broke; that’s being tight! If you’ve paid your bills, put money into savings and investments, but refuse a night out because you’ve run out of fun money, you’re choosing not to spend, not genuinely broke.

You are not broke. You are prioritising what you do with your money. That's very different from being poor and having no back up for an unexpected cost.

There’s a lot of middle class people who feel poor because they are struggling to live within their means and unable to afford a decent standard of living. That’s not the same as being poor.

What a strange interpretation.

I haven’t booked a 5-star island escape next summer, bought a new Mulberry or upgraded my car either. Technically, I have the money to do all of those things. Is it tight that I choose not to?

Broke is subjective. You could argue that nobody posting here is broke because they have a device to access the Internet on.

That’s different, though. You’ve chosen not to spend your money on luxuries, which is perfectly reasonable. But you said you would turn down a night out because you were broke, yet have large savings. That’s what I’m questioning.

I am happy to turn down things that don’t fit within my budget, whether they are big or small. Again, I’m sure everyone has a line that they draw about these things.

there are definitely people out there who consider a night out to be a luxury.

I agree with you.

A couple of years ago I was very broke for a few years with partner and a baby. I’m talking not being able to afford the £1.40 bus fare, so choosing to walk for 50 minutes there and back with the baby so we could go to free baby groups. Trying to do a full shop on £30 per week. Always being dangerously close to having the gas and electricity being cut off every month (and having it cut off a few times). Going hungry to buy baby formula.

I’m in much better circumstances now and I have a job that pays better. On paper I’m doing well, but it does take a while to recover from living without much money (even when you do start earning more). Think, recovering credit score, needing to update broken furniture and things that you just couldn’t do when you had no money. I haven’t managed to save because of this, but I would never, ever, consider myself poor now. It is frustrating because every time I’ve managed to ‘better’ myself and worked hard to do so, it feels like the cost of living goes up and so I’ve never really been able to increase my lifestyle luxuries because of this. It’s frustrating, but I made a promise to myself that I would never forget those times and always consider myself privileged if I could stay on top of my bills, feed and clothe my children, and afford their birthday parties/Christmas presents.

I think a lot of people lack perspective on what it’s really like to be poor.

It's not broke or tight - it's just being sensible!

God MN just loves these kind of threads doesn’t it?

But what is your point? We all know there is a sliding scale of poverty, it's just not possible to say, 'I'm on 4.2 of the poverty scale.'

You haven't said what you mean by 'savings'. As others have pointed out, it is hard to compare and just because someone owns their home but runs out of cash before the end of the month, doesn't mean they're richer than the neighbour who rents but has a salary that gets them to the end of the month. Savings of £1k is better than nothing, but not as good as £10k, which is not as good as £100k. So what? All those people could legitimately be poor depending on what is being referenced and what their financial responsibilities are. Are you saying one shouldn't be able to use the word 'poor' unless you're completely destitute, on the street and unable to say where your next meal is coming from?

Exactly. A lot of people on MN seem to want to police vocab.

I've got £1000 in an emergency savings account. With the cost of living etc., I'm struggling day to day and have to budget well and watch every penny. I'll not touch the savings though as that's there in case an emergency happens.

I feel poor but I feel reassured that the savings are there just in case. Eg if the boiler packs in tomorrow, I know I can get it fixed and we'll not have to sit in a cold house with no hot water.

With regard older people , unless they can release the value of their house they may consider themselves badly off. You can't pay your bills with a nice house . It's the not having a reliable decently paid income that makes people feel poor . Even if they have £1000 in the savings , one boiler replacement or roof fixing will replenish it . And the fear of illness or redundancy or forced maternity can worry people . Living paycheck to paycheck is very stressful and can make people very very reluctant to spend any money except on essentials . Despite knowing that you can so far cover your bills in today's society you may feel poor as you can't afford what is seen as typical , like days out ,treats for kids , the odd coffee . It can be a depressing way to live .

I agree completely, I’ve been having sympathy for a relative complaining about being poor and not being able to afford basics and supplementing bits here and there for them because I tend to have about £70 left over at the end of the month but no savings. Just found out they put £400 a month into savings. I said to them that they aren’t poor or skint they are choosing to stick to a budget, that is a luxury that not everyone has. I had wanted to be saving £50 a month but not been able to because I’ve been buying them food here and there whilst worrying about them.

Of course you're not poor if you have money - whether that's easily accessible in your Current account, in set-aside savings or tied up in assets (housing).

Do you have an axe to grind OP?

With regard older people , unless they can release the value of their house they may consider themselves badly off. You can't pay your bills with a nice house

What situation would this be?
Lack of mental capacity? Inability to move due to physical limitations? Worries about deprivation of assets?

Have you really met someone who sends their children to private school and then say they are poor?

It is sensible. Surely you can see why you saying you are broke is misleading?
Maybe 'cash poor' would be a better way to describe the situation.
Most people understand broke to mean no £ safety net.

There is a difference between being poor and in poverty, living hand to mouth etc and people use these terms based on their own context.

ive seen people post if you earn fifty k you are rich, to look at rhe opposite side of the coin,

everything is relative to tne person,

I kind of agree, but our savings are for things like replacing car (11 years old) or new bathroom (it's 30 year old), it's not for putting food on the table or mortgage. Used to be good at saving but not managed to add money to savings since 2024, and are having to be more frugal than ever. The savings currently stands at 7k, and I do feel poor as can't have the treats, and still don't have enough for new bathroom or car. I don't want to have a car on HP or lease, or extend mortgage for bathroom. I appreciate it's a first world problem.