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Savings!!

16 replies

mummy2boys53 · 09/11/2022 07:41

Does anyone actually have any savings these days!! Late 30’s, 2 children, mortgage. We save a few thousand, something happens and it’s goes and just feels like it’s the same cycle over and over again!!

OP posts:
tribpot · 09/11/2022 08:02

Well the good thing is that you do have this cushion for unexpected expenses. If you didn't have those savings, presumably you'd have to borrow to cover them. Frustrating when what you want to do is build up your savings, though!

One of the things that really made sense to me when I first started using the budgeting tool YNAB was 'know your true expenses'. A lot of unexpected expenses aren't actually unexpected, they're variable and unpredictable, like car repairs or one-off prescription costs, or even down to needing new shoes. Knowing your true expenses takes time and is more than looking at just the monthly direct debits. I then put money away into those categories every month and let it roll over until needed. So I have categories for clothing, car repairs, Christmas, insurance, holidays, birthdays, household repairs, and an emergency fund - and then when I have to buy something in one of those categories, usually the money is already there for it.

I appreciate, though, this is far easier said than done in the current climate, but it's definitely worth looking beyond the predictable monthly expenses and putting even small amounts away to manage the unpredictable, non-monthly expenses when they arise. YNAB is a great tool to do that but it does cost money, you could do something similar with a spreadsheet and some bank accounts support the idea of savings pots, so you can put money into a pot labelled car repair, for example.

VeganGordie · 09/11/2022 11:45

We recently discussed this at home and decided to ask for professional help with savings so we don't panic in the future. Suttons FS have been great id highly recommend them :)

RandomMusings7 · 09/11/2022 11:51

Yep. A few years of expenses worth put away in savings.

But I'm in a very priviledged position. 30s, no kids, no mortgage, highly paid job. Also quite conscious about money and not into buying flashy stuff or keeping up with the Johneses.

Jmaho · 09/11/2022 12:00

We do but we are early 40s
We only have savings now due to the following
We kept around 20k back when we sold our house to put towards an extension on our new house but it was far too expensive for the small extra space we'd get so didn't do it and are just planning on cosmetic work instead just as and when we get time. But we've got used to that nice little comfort blanket and we don't want to touch it now
After paying childcare for 4 children for years we are finally in a position that we don't need it which has made a huge difference so we are now able to save
Husband has moved jobs and got a higher salary

Not too long ago we were walking round the supermarket with a calculator and things were very tight
It's only been in the last year or so where we've been able to save
Saying that we both drive very old cars and mine is definitely on the way out so the money we've saved in the last year will be used for a new car

CloudybutMild · 09/11/2022 12:06

Yes, we’ve saved and invested for years, always choosing to live slightly under our means to make sure that this is possible.

Of course it’s meant having fewer nice things than people on the same income who’re happy to spend everything as it comes in, but I think it’s been the right decision.

Having no savings at all is a recipe to turn a minor problem such as a few months out of work into a full-blown crisis, which isn’t something I’m willing to risk.

I also suspect that the vast majority of people who say that they absolutely aren’t able to save could manage to put a bit aside if they were willing to forego things that most people would think of as a luxury.

CloudybutMild · 09/11/2022 12:08

On your point of “it goes”, that’s often down to budgeting. You have expected annual costs, and also an expected rate of needing to maintain a car, buy clothes, replace washing machines etc. This needs to be budgeted for.

ChickpeaPie · 09/11/2022 12:09

Yes we do. Also late 30s, kids, mortgage.
Surely all depends on your circumstances

RagzRebooted · 09/11/2022 12:10

tribpot · 09/11/2022 08:02

Well the good thing is that you do have this cushion for unexpected expenses. If you didn't have those savings, presumably you'd have to borrow to cover them. Frustrating when what you want to do is build up your savings, though!

One of the things that really made sense to me when I first started using the budgeting tool YNAB was 'know your true expenses'. A lot of unexpected expenses aren't actually unexpected, they're variable and unpredictable, like car repairs or one-off prescription costs, or even down to needing new shoes. Knowing your true expenses takes time and is more than looking at just the monthly direct debits. I then put money away into those categories every month and let it roll over until needed. So I have categories for clothing, car repairs, Christmas, insurance, holidays, birthdays, household repairs, and an emergency fund - and then when I have to buy something in one of those categories, usually the money is already there for it.

I appreciate, though, this is far easier said than done in the current climate, but it's definitely worth looking beyond the predictable monthly expenses and putting even small amounts away to manage the unpredictable, non-monthly expenses when they arise. YNAB is a great tool to do that but it does cost money, you could do something similar with a spreadsheet and some bank accounts support the idea of savings pots, so you can put money into a pot labelled car repair, for example.

YNAB massively helped me with this. I don't pay for it anymore, I now use a free/cheaper Web only one called budget with buckets, but it's the same principle. It's almost as good as YNAB.

We have some savings towards a mortgage deposit, but they're locked in a LISA so can't use them even if we want to! Also have a HMRC help to save accounts each. Again, there's a penalty for taking the money out so we don't. Only save £100-200 a month. But always save some even if I feel we can't afford it.

SmokedHaddockChowder · 09/11/2022 12:48

Yes, although I don't know how that's going to help you OP.
As I've earned more over the years, DH and I have continued to keep our outgoings very low. We don't have kids and I don't buy much because my passions in life (hiking and so on) are free.
I earn £52k and have £70k in savings as my rainy day fund. DH has recently lost his job and is now retraining, and I'm in a position to cushion us through this difficult time.
I'm aware our circumstances could change at any point though, so I don't take it for granted.

QforCucumber · 09/11/2022 12:48

Similar situation to you, and it seems as though, discussing with colleagues at work - those who are now older with older kids were in the exact same situation in their mid 30s too. Once kids are in school and things settle down is when most people seem to start building up. In the last 3 years we've moved house, had a baby, a SMP only mat leave and paying out FT childcare - plus ASC for the older one. I'm 35. The aim is by 40 to have 3 months salary saved.

NorthernDuckling · 09/11/2022 16:39

We do at the moment (both 35) most of it was saved through covid, but we also finished paying a loan for house extension and also my student loan (these are c£500 between them).
We now have about £18k but we are ttc so most of this will go on mat leave/ a new car because we currently share a fiat 500 and it’s clearly not suitable for a baby!

Marmut · 09/11/2022 17:46

Yes, I do, mid 40s, one child in primary school. I have 12.5 k in shares & stock ISA and 19 k in saving. I am not sure how much my DH daving is. I suspect it is less than mine as he is a spender.
Mortgage was paid off a year ago and no debt. We live frugally although we still go abroad for holiday. I don't own branded stuffs (as I don't care about being seen in certain ways by others) and live within my means. My only vice is food, but I hate being fat. My other hobby is running and hiking which are pretty cheap to do.

Darbs76 · 10/11/2022 20:52

I’ve got 45k in savings which I never thought I would (I’m a single parent), due to living in my ex’s house with the kids whilst he has worked overseas the last 3yrs. I did a lot of overtime and then got a promotion. Going to keep on saving whilst I have no housing costs as I know it won’t last forever

flowerycurtain · 10/11/2022 21:34

@RagzRebooted have you got a link to your free version of YNAB? I'm coming up to my first expensive renewal. I used to not mind £40 but it's nearer £90 now!

Brokendaughter · 11/11/2022 00:41

I do, but I don't keep it in the bank as it makes no money there.

It does take about 3-4 days to get access though if I need it in an emergency.

Mindymomo · 11/11/2022 06:28

We started saving when I was 40, because we had an endowment mortgage that wasn’t going to be enough to pay it off. We were going to move around that time, but couldn’t find anything we liked for what we could afford, so I saved as much as I could thinking we would one day move, but we never did. Unfortunately most of our savings now is through inheritance from our parents, my DH was an only child so he inherited all of his late parents assets and I inherited one third of my parents.

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