Am I the only person who doesn't have any savings?

moneypuddle

I didn't have any savings, until OH and I decided we wanted a baby. From that point onwards we set money aside every month. Its not so hard to 'find' that extra money when you know what you're saving for.

tealady

I have no savings cos a man called Bill keeps writing to me. He tries to hide his identity but I have him sussed (he uses names like gas Bill, leccy Bill etc)

NewKittenHelp

Bluemeanie wrote: »

I know, but personally, I would rather struggle in retirement, when my body has slowed down anyhow, than go without going to Florida, Rockies, Kenya, Amsterdam, out on the town etc when I am young. And then have the money to done stuff but struggle. But #i guess whatever works for you. I do pay into my works pension BTW, I am lucky, mine is still a relatively good one.

I don't see it as an either/or situation. I have different savings piles to enable me to cover all my bases. I have my ISAs for my house deposit (which are currently my priority), my E-savings account for emergencies (which I don't touch unless it's a real emergency but the aim is to eventually get enough in it to live off for 12 months), my non-internet savings account which is money earmarked for my future, and another e-savings account for holidays and luxuries.

I live off 50% of my income because I have to. 20% plus goes to the taxman anyway so I don't even consider that mine (self-employed) and the rest is essentially savings. You adjust your lifestyle to your earnings, which a lot of people don't do these days. It's as if they've learned nothing from the recession. I know it's not possible for everyone but I'd say the majority of people aren't honest with themselves about their budgets and aren't willing to make the sacrifices to be financially secure. The irony is that they'll be forced to take the sacrifices eventually anyway, and they'll be much tougher then when creditors are beating down your door.

I justify my holidays and luxuries to myself by working more for that money. Once I've done my usual stuff and earned my usual amount for the week, any extra that I take on then goes into my holiday account. The idea to me that things like holidays and other luxuries are necessary and a right is just stupid. So they are treated accordingly, as something for when I have the extra to pay for them. Basically I live within my means and any luxuries are cut the minute I can't afford them.

Bluemeanie_2

NewKittenHelp wrote: »

I don't see it as an either/or situation. I have different savings piles to enable me to cover all my bases. I have my ISAs for my house deposit (which are currently my priority), my E-savings account for emergencies (which I don't touch unless it's a real emergency but the aim is to eventually get enough in it to live off for 12 months), my non-internet savings account which is money earmarked for my future, and another e-savings account for holidays and luxuries.

I live off 50% of my income because I have to. 20% plus goes to the taxman anyway so I don't even consider that mine (self-employed) and the rest is essentially savings. You adjust your lifestyle to your earnings, which a lot of people don't do these days. It's as if they've learned nothing from the recession. I know it's not possible for everyone but I'd say the majority of people aren't honest with themselves about their budgets and aren't willing to make the sacrifices to be financially secure. The irony is that they'll be forced to take the sacrifices eventually anyway, and they'll be much tougher then when creditors are beating down your door.

I justify my holidays and luxuries to myself by working more for that money. Once I've done my usual stuff and earned my usual amount for the week, any extra that I take on then goes into my holiday account. The idea to me that things like holidays and other luxuries are necessary and a right is just stupid. So they are treated accordingly, as something for when I have the extra to pay for them. Basically I live within my means and any luxuries are cut the minute I can't afford them.

It's great that you have found something that works for you. By the way, I don't live beyond my means to do all the stuff I want too. I "mini save" for holidays, currently it is Vegas for my 30th that I'm saving for. Other than my mortgage I do not owe anyone a penny, and never have, I've never even had a car on finance, always saved and bought outright. And of course if I lost my income or had to take a lower one, I would cut back. I don't appreciate your judgmental comments that I am "stupid" when it is you that is not actually grasping my point. I never said luxuries and holidays were "a right". My point is, for me, I would rather enjoy myself when I am younger, than be 80 with no good memories to look back on and looking at my £80k or what have you in the bank. Everything in balance. I would never encourage anyone to get into debt. I have several friends who are up to their eyeballs due to having the latest thing or taking on mortgages they can't afford etc.

NewKittenHelp

Bluemeanie wrote: »

It's great that you have found something that works for you. By the way, I don't live beyond my means to do all the stuff I want too. I "mini save" for holidays, currently it is Vegas for my 30th that I'm saving for. Other than my mortgage I do not owe anyone a penny, and never have, I've never even had a car on finance, always saved and bought outright. And of course if I lost my income or had to take a lower one, I would cut back. I don't appreciate your judgmental comments that I am "stupid" when it is you that is not actually grasping my point. I never said luxuries and holidays were "a right". My point is, for me, I would rather enjoy myself when I am younger, than be 80 with no good memories to look back on and looking at my £80k or what have you in the bank. Everything in balance. I would never encourage anyone to get into debt. I have several friends who are up to their eyeballs due to having the latest thing or taking on mortgages they can't afford etc.

I didn't say you were stupid and nor were my comments about holidays being seen as a right about you. I apologise if I gave that impression, but it was not my intention.

FatVonD

moneypuddle wrote: »

Its not so hard to 'find' that extra money when you know what you're saving for.

That's very true, I've never had savings but I saved half the cost of IVF treatment then in 9 months paid off the other half which was on a credit card and saved enough to pay the mortgage for an extra 3 months once maternity pay stopped so I obviously can do it if something is important enough to me..

I need to get me some focus from somewhere

Bluemeanie_2

NewKittenHelp wrote: »

I didn't say you were stupid and nor were my comments about holidays being seen as a right about you. I apologise if I gave that impression, but it was not my intention.

No worries. Sorry for reading too much into it. Best wishes.

NewKittenHelp

Bluemeanie wrote: »

No worries. Sorry for reading too much into it. Best wishes.

I've read it again and I can see why you thought that. I've got friends who bought at 20 with an over 100% mortgage and are stuck in their flat which they hate because they won't give up their holidays and luxuries so they can get out of negative equity. Not that it stops them moaning about it! They put my teeth on edge so much.

Brighton_belle

thehappybutterfly wrote: »

I think a balance is needed. You need to enjoy life while planning for the future but that's not just retirement. Planning for home emergencies is essential if you don't want to rely on credit. £200 or £300 savings is a nice cushion to have and shouldn't take too long to save.

Friends of ours used to complain they were skint but they had £10k in the bank in savings! How is that skint?

£200 - £300 is an excellent start but really is still very little for life's regular unexpected (therefore to be expected) emergencies. When you think a new boiler costs at least £2,000 and a major car breakdown , maybe £600. Or unexpected health issues where suddenly you can't clean your own home, or need to install a chair in your bath to be able to get in and out of it etc. My IFA advises everyone to save 6 months of out goings for an emergncy fund.

I can quite see how your friends say they are skint: the £10K is an untouchable true emergency fund, not for dipping into for holidays/ nights out etc. So for day to day living perposes, they may well be skint. I admire them if they are limiting there day to day expences by not dipping into that fund.

I do agree about the idea of balance though and everyone has to find what is right for them. But as you get older, you may not be able to travel, but you may have increased needs to be able to keep warm, pay for transport, help in the garden,and little things to make life easier, more comfortable.

OP, even £25 a month (= £5.77 a week = a magazine and a coffee) will add up to £300 in a year, £600 in 2. Is there anyway you can find that? Set it up by SO from your CA in to a separate savings account so you can see it as untouchable. Because if you have the CC for emergencies, that is stil going to need to be paid off.

SandC

I save and always have but you are certainly not alone!

My friends who don't save (say they can't) are not single and living alone either - seems the more you have the more you spend anyway. I've found single childless people worry about it more because there's nobody else to rely on.

What I do is save small and regular. Treat it like a bill going out. You won't see much happening for a good while but leave it alone and forget about it and then you will get a nice surprise when you remember it. Or make an account for, say, Christmas spends. Then when it comes to that time of year, try to just do your Crimbo out of your ordinary salary anyway and leave your 'pot' untouched. Or use half of it and leave the rest - the year after that you'll have more left and so on....

I will say though that it can be very easy to get a bit tight about the savings - when you've saved for that rainy day and the rainy day comes but you are loathe to use your savings for that very purpose.