Less than 50% of the Adult Population of the UK have any debt whatsoever!

MrRee_2

With all the doom and gloom you would think 99% of the population had debts around their necks .... not so apparently.

I thought I was in the 1% who had no debt at all ..... turns out that most of the people around me have no debt either.

So, if that is the case, why are we supposed to be gloomy? Is it simply that IR's are so pathetic? Or is it just Media Hype?

So, more than 50% of the UK Adult Population have savings ... but, what would be the general amount saved? If we have no debt, and both adults in a house are full time earners, then I'm guessing that £2,000 must be saved each and every month (no debts remember) - assuming of course that the household income is a very conservative £4,000 a month (between two people remember). £2,000 a month to pay bills and live seems reasonable.

That means each year this average family has accumulated £24,000 ..... that's £120,000 saved since the recession took hold 5 years ago. That's just a 5 year snapshot of course, some had savings before then and others started saving after 2008.

So, an anonymous poll, just for interest ..... what does your households savings stand at at todays date?

grizzly1911

You missed out £1m+.

MrRee_2

I did, so that I didn't have to vote ......... ;-)

Nikkster

Less than -£100,000 (i.e. net owings exceed £100,000)

Loughton_Monkey

The word "savings" is not precise. I personally take it as the amount of money you could - if you wanted - gather up, turn into £20 notes, and pile it up on your table. [including, for example, money locked up in cash isa wrappers or even S&S ISA wrappers that you wouldn't cash in unless in an emergency.]

HSBC claim that the average amount is £14,400 link here.

More importantly, though, people should have other wealth locked up in pension pots and in house equity.

My records show that in 1979 (age 30), I could have claimed savings of only £1,500. But my total wealth was about £47,000, being wrapped up primarily in (a) house equity, (b) pension values, and (c) endowment policies backing up the mortgage.

I tend to look on "savings" as a practical matter to do with cash flow and short term risk, and entirely subsidiary to the much wider concept of building up a growing "net wealth". It is total net wealth that really matters, and in round figures, we should be thinking of accumulating in the order of 20/30 times annual spending or more by the time we retire. The proportion of this that should be "savings" is not too important, and should not be massive.

purch

The word concise appears to have little meaning on this forum.

Carl31

£4k a month on average? I really doubt that, maybe £3k?

MrRee_2

That was £4k for a COUPLE of adult earners, not one.

When I say 'savings' I mean the amount of cash one has on deposit. Including ISA's but not Stocks and Shares ..... just cash you can get hold off quickly.

chucknorris

MrRee wrote: »

I did, so that I didn't have to vote ......... ;-)

I think it is madness to keep more than £1m in instant savings, I can't really believe that someone would do that unless they had much more invested elsewhere (by much more I mean at least 20 fold) or it was temporary after the recent disposal of a business or cashing in an investment.


Although I must admit I am not comfortable with the cash that I am holding at the moment, excluding ISA's it is just under 10% (although some of that is in maturing long term fixed rate bonds).

chewmylegoff

MrRee wrote: »

That was £4k for a COUPLE of adult earners, not one.

When I say 'savings' I mean the amount of cash one has on deposit. Including ISA's but not Stocks and Shares ..... just cash you can get hold off quickly.

Your average couple each have an average-ish full time income but you have fatally forgotten to account for income tax and national insurance in your calculations. So you need to account for that - about another 400 a month each in costs and then the remaining £1200 left over after bills and tax will be spent on child care as they're both in full time work.

Also, you could at least have posted a link to support your thread title so we can point out the typos in it.

MrRee_2

My figures ARE Net figures, is. AFTER tax and ni ........

And childless .... as they are now fully mature in their professions