Living payday to payday. How many people do it?

Bloomberg

The bottom line is that when you have a job you should be looking to save for a rainy day. People fall into the trap of feeling too secure just because they currently have a regular income. The importance of regular saving cannot be overstated.


Everyone should ask themselves if they could survive without their next wage/salary, if the answer is 'NO' then alarm bells should start ringing very loudly. I appreciate that nowadays not everyone can save but there are still people who happily spend every single penny. Barclays estimate that in excess of £2 billion is owed to friends in this country. That can only be seen as a measure of the extent of the disarray that many people's finances are in.

[Deleted User]

So true. I know people who spend every last penny they earn, and budget to be at £0.00 the night before payday... but what if payday never comes?

Bloomberg

billbennett wrote: »

So true. I know people who spend every last penny they earn, and budget to be at £0.00 the night before payday... but what if payday never comes?

I have been told that the Italians are a nation of savers, the ones I have met encourage or even force their children to save. What has gone wrong in Britain?


I know people whose children stay home until their late twenties and then leave home in debt. The parents must take some of the blame for that - pure madness.


My children are at home and working full time. I take three quarters of their wages and save it. Realistically most people don't have one quarter of their wages left after paying their bills. Unbeknown to them I will give them the whole lot back one day plus interest.

innovate

Bloomberg wrote: »

My children are at home and working full time. I take three quarters of their wages and save it. Realistically most people don't have one one quarter of their wages left after paying their bills. Unbeknown to them I will give them the whole lot back one day plus interest.

How are they learning to save themselves if you do it for them?

Bloomberg

innovate wrote: »

How are they learning to save themselves if you do it for them?

They think that some of the money is for their future and all the money is taken with their blessing. In addition to saving money for them I educate them and feel that they appreciate the importance of saving.


My son is twenty two and I have taken in excess of twenty six thousand pounds from him. Next year he wants to buy a flat with his girlfriend, if the huge lump sum that I will give him does not teach him about saving and its benefits what on earth will?

And your point is?

flea72

Bloomberg wrote: »

If people had religiously saved 10% of their income then they would be far better off now. It gives me no pleasure to say this but the worst is still to come for those who have been reckless. Interest rates will one day have to rise and there will be so many casualties. Those who are only just managing to pay their mortgages now are effectively on borrowed time.'

I live payday to payday and have never had any savings. I do not see myself as being reckless with money. I have no debt other than a mortgage (cheaper than renting), but have only ever been able to earn inline with my bills. Pay rises have never been of sufficient amount to counteract the rise in bills/cost of living, so I just tick along, adjusting and cutting back when needed (usually on food)

I do not see that I am 'just managing'. I have many options should I loose my job, the same as all other people. Th difference being that the drop, prob wont hit me as hard as someone with savings, as I am already used to the min wage jobs/lifestyle.

From personal viewpoint, my friends who stress most about money, are those with savings. They have at least a years salary in savings and are mortgage free, but still worry about losing their jobs and how they would cope. They don't seem to understand what they are saving for.

I don't expect anyone to help me. whats makes people think that just because you live hand to mouth you are in need. If i want to earn more than I currently spend then the only thing I can do is aim to get a better paid job. Which is the road I am taking. However, in the short term, until I qualify, I actually have less money coming in, than when I was working, but I quite like rubber chicken, so that's ok

Naf

innovate wrote: »

How are they learning to save themselves if you do it for them?

Bloomberg also pointed out that the amount he/she takes is fairly representative of what someone could expect to have to pay to bills anyway: so they ought to be able to budget savings from the remainder themselves too.

I always try to budget to have £50+ left by the following payday. Relying heavily on HB, this rarely actually happens.
Now I'm a student things are easier in some respects, as lump sums come regularly so most of my bills are now paid up 3 months in advance. The rest is paid from the HB/CTC/CB that comes in through the month. These days we ought to see £100-200 per month excess reasonably easily... Finally.

Bloomberg

Naf wrote: »

Bloomberg also pointed out that the amount he/she takes is fairly representative of what someone could expect to have to pay to bills anyway: so they ought to be able to budget savings from the remainder themselves too.

I always try to budget to have £50+ left by the following payday. Relying heavily on HB, this rarely actually happens.
Now I'm a student things are easier in some respects, as lump sums come regularly so most of my bills are now paid up 3 months in advance. The rest is paid from the HB/CTC/CB that comes in through the month. These days we ought to see £100-200 per month excess reasonably easily... Finally.

It seems that you have everything worked out nicely. As you are living slightly below your means you have a cushion of sorts.

I am glad that someone can understand the rationale behind my actions, you talk a lot of sense. All the best.

Lokolo

Bloomberg wrote: »

My son is twenty two and I have taken in excess of twenty six thousand pounds from him. Next year he wants to buy a flat with his girlfriend, if the huge lump sum that I will give him does not teach him about saving and its benefits what on earth will?

Him doing it himself?

Yes I realise I am a bit of a oddball in terms of my age and finances. But I lived at home, paid no rent, no board, nothing. I had over £1500 disposible income each month. I saved most of it myself, I didn't need my parents to take it from me to save it.

However my brother is the opposite and my mum is doing what you are, but I don't expect him to work out the importance of saving because of it.

meer53

Bloomberg wrote: »

They think that some of the money is for their future and all the money is taken with their blessing. In addition to saving money for them I educate them and feel that they appreciate the importance of saving.


My son is twenty two and I have taken in excess of twenty six thousand pounds from him. Next year he wants to buy a flat with his girlfriend, if the huge lump sum that I will give him does not teach him about saving and its benefits what on earth will?

And your point is?

I see why you have done this but i too don't think you're doing your children any favours.

Your son is used to living off the money he has left after he has been paid and he has paid you. When he leaves home and finds himself with much more money available from his salary, what will he do ? He has no experience of saving money, you've done all that for him. You say that the money will be given back to them but that they don't know that, then you say that the money is given with their blessing because they know it's for their future ? Bit of a contradiction there.

I'd say it's far better to let children do things for themselves. Thats the only way they learn.