Why don't people look forward ?

PILES

jaylee3 wrote: »

In an ideal world, this having six months salary in the bank to 'fall back on,' would be a thing poohsticks. However, this is not a perfect world, and your 'ideals' are not doable for many many people. I also don't know anybody that regards their monthly income as a target that they MUST spend!

Realistically, it's rather more difficult to put it into practice to have 6 months salary in the bank - and keep it there. There is ALWAYS going to be stuff that you need/want that costs more than the 'spare money' from your wages.

If you own your own property/have a mortgage, there are always going to be repairs and maintenance to worry about, or a new kitchen or bathroom or windows or boiler. Nobody is going to have the multiple 1000s that these things are going to cost, so people take loans and finance, and this eats into any 'surplus' they may have.

Add to that, paying for every other 'life' thing: children, student loans, a wedding, a new car, your kids weddings, a few holidays, and general living, and you've not got much left.

The days are gone of good wages and low house prices and free uni fees and suchlike. Times are tough, everything is expensive, from house prices to car prices, from food to petrol, and most people have some kind of debt or finance.

I'm afraid life with 10 grand snuggled away in the bank for a 'rainy day' with no debt and a shedload of surplus dosh is a mere pipedream for many. And yes, a massive amount of people DON'T have lots of surplus cash. Some it is because they have squandered it on holidays and stuff, but mostly it's people who genuinely struggle month to month to make ends meet.

Sorry OP, but I think I find your post very naive. You are either very lucky, very wealthy, or very spoilt. Or possibly all three. And I am guessing you are of the older generation (ie; born before 1960.) I guess that because I don't know a single solitary person under 50 who would agree with your points. I am sure you know many though.

Sorry but I agree with Poohsticks. A lot of your examples are choices you can affect i.e. a new car, really? a few holidays, really? You can choose to not do some of those things. Life may be a bit dull but to say you cannot save is rubbish. You can always manage your finances and spend within your means.

Georgiegirl256

jaylee3 wrote: »

What's the weather like up there on your high horse? :rotfl:

I was going to give a flippant reply, but tbh I cba, so I'll answer it sensibly. It's nothing to do with being on a high horse or such like, but more to do with agreeing with the OP.

How amazingly fortunate for you that you had so much savings that you could afford the multiple thousands that a new roof cost,

Yes, it was actually, very fortunate.


and I suppose if you needed a new car, you would have the £7-15K that it would cost, just sitting in one of your many savings accounts. Or maybe you cycle everywhere???

A, Yes I do have the money actually, in an ISA, not showing off or anything, just been careful and saved, and
B, I wouldn't buy a new car anyhow, not unless I had ALOT of money,a second hand car does me just fine.

And you have never had finance on anything? You have never had a credit card? Never used a catalogue? You have never had any kind of debt? I suppose your mortgage is all paid off?

Yes, I have had finance in the past, usually interest free though. You seem to have taken my post the wrong way, I wasn't meaning it to be judgemental or anything, just that if possible people should try and have some contingency fund, then if something does pop up then it won't be such a crisis. I wish my mortgage was all paid off!

ACTUALLY, I don't think a new kitchen is necessarily essential; that was just an example, and probably a bad one... I was just saying that SOMEtimes, things come along that you don't expect, like a boiler breaking, or roof repairs, or something else major coming up. And people don't ALWAYS have enough money upfront to pay for it. Why the hell do you think so many tens of millions of people are in debt?

Yes I know this, and it can't be helped for some people, but what the OP was saying is that people spend willy nilly, and then wonder why they end up in debt as they don't have any savings to pay for any emergencies.

I am literally sick to death of pompous, judgemental people looking down their nose at people who are in debt, or who don't have the same kind of amazing financial skills and who choose to spend frivolously sometimes, and acting like these people are somehow inferior to them.

No one is being pompous or are looking down their noses at people, if you feel that, that's down to your own insecurities.

I am trying to figure out whether you are just incredibly judgemental and sanctimonious, or whether you are just making stuff up to suit your agenda.

None of the above.

Enjoy your day and enjoy your life, in your world of perfect human beings who never get in debt, never eat bad food, never gain weight, NEVER do anything wrong! Just remember, there but by the grace of God go you.

I totally agree with there but the grace of god, and I am far from perfect, and not gaining weight....ha, I wish!

And now I am putting you on ignore.

:j Although you probably won't even read this as I'm on ignore!

Herongull

If you take loans you pay interest, and the sort of interest you pay on credit cards etc is far more than inflation. This means that having debts (other than interest-free loans) reduces your spending power significantly.

I couldn't afford to throw money away like that.

So unless you are seriously wealthy, always pay for things out of savings. Credit cards are fine for cashback, but you can have them set up to pay the full balance off each month.

If you avoid throwing money away in interest payments, then for exactly same amount of spending, you always have plenty of savings.

No penny pinching, frugality or whatever needed.

DaMint

To chip in and add two pennies worth

I think it comes down to priorities, and in life, they are different for every person. Some people need security (mortgage free, savings for a rainy day) and some people need to feel like they are experiencing life (holidays, nice car etc).

My personal opinion is that I work hard to get a wage and I would like to spend that on experiencing some of the world, rather than putting it in a bank account and enjoying it through looking at it when I check my balance online. That said, I would also love to have a mortgage (currently renting and trying to save a deposit) and that comes with its own challenges. I'm not about to find fault with anyone who forgoes holidays in order to bolster their savings, its just something that isn't a priority for me right now.

Take your happiness where you can find it

Bantex_2

BoE etc hate savers and have done everything they can to punish them. The message is get yourself into as much debt as possible and we will bail you out, one way or another.

Herongull

DaMint wrote: »

To chip in and add two pennies worth

I think it comes down to priorities, and in life, they are different for every person. Some people need security (mortgage free, savings for a rainy day) and some people need to feel like they are experiencing life (holidays, nice car etc).

My personal opinion is that I work hard to get a wage and I would like to spend that on experiencing some of the world, rather than putting it in a bank account and enjoying it through looking at it when I check my balance online. That said, I would also love to have a mortgage (currently renting and trying to save a deposit) and that comes with its own challenges. I'm not about to find fault with anyone who forgoes holidays in order to bolster their savings, its just something that isn't a priority for me right now.

Take your happiness where you can find it

But if you avoid loans, you have far more spending power, which means you can have more of what you want, holidays, going out, bigger house whatever.

You can either spend your money on what you want or spend some of your money on what you want and spend the rest on interest.

Why would anyone choose the latter?

The situation would different if all loans were interest-free, but since they are not, why deprive yourself of things you want or need by throwing money away in interest payments?

Prothet_of_Doom

In 2005, I'm ashamed to admit, that, when my 94 year old nan died after suffering from a massive stroke 13 months before and being a prisioner in her own world, that I made plans as to what to do with my inheritance.
My wife had just gone back to work in a reasonably well paid job, I'd just been promoted, we had a few savings, and I started looking at my dream house which would require an additional £100K mortgage plus spending all my inheritance.

As fate would have it, it took 13 months (ironic timescale perhaps) to get the inheritance, my wife became ill with ME (Chronic Fatigue), and gave up work, and house prices went up and I started hating my new poisoned !!!!pot of a job.
We were no longer in a position to take on the extra loan, and then in 2009 I was made redundant from a different job (one that I'd moved to becuase my old one wasn't secure enough. oh how we laughed)

Instead we used the inheritance to pay off the remains of the mortgage on the compromise house we live in. It's home, but it's not the dream.

What would have happened if we'd spent all our savings, and taken on an extra £100K loan ? That's £5K or £6K a year we didn't have without my wife earning, and my redundancy (however short the time without work was) would have taken us down.

We are lucky enough to have family who might have come to the rescue, but most people don't and mine put conditions on help, which means you really don't want to go there.

Cycrow

Herongull wrote: »

But if you avoid loans, you have far more spending power, which means you can have more of what you want, holidays, going out, bigger house whatever.

You can either spend your money on what you want or spend some of your money on what you want and spend the rest on interest.

Why would anyone choose the latter?

The situation would different if all loans were interest-free, but since they are not, why deprive yourself of things you want or need by throwing money away in interest payments?

Sometimes using credit is unavoidable.
Besides, you can even get more spending power by using credit, i did.

i used credit to relocate when i found a job, if i didn't, i wouldn't have been able to take the job, so using credit means i end up earning alot more

Sharon87

DaMint wrote: »

To chip in and add two pennies worth

I think it comes down to priorities, and in life, they are different for every person. Some people need security (mortgage free, savings for a rainy day) and some people need to feel like they are experiencing life (holidays, nice car etc).

My personal opinion is that I work hard to get a wage and I would like to spend that on experiencing some of the world, rather than putting it in a bank account and enjoying it through looking at it when I check my balance online. That said, I would also love to have a mortgage (currently renting and trying to save a deposit) and that comes with its own challenges. I'm not about to find fault with anyone who forgoes holidays in order to bolster their savings, its just something that isn't a priority for me right now.

Take your happiness where you can find it

I'm like you. I want to live life for now. Ok so I may have built up some debt in the process but it's being managed well (all on 0%) and I'm enjoying myself whilst I'm young!

The reason I'm doing that is because after graduating and saving up 2 grand to move to London to get my dream career (the industry I'm currently in) was the beginning of the credit crunch/recession. I could have went back home but my mum encouraged me to go to London or I'd never go. I was unemployed for 8 months, so got into some debt. Took me ages to find a job and when I did it was in a cinema on a 4 hour contract. I wasn't paid much, all my savings had disappeared and was relying on rubbish pay and housing benefit to cover my costs. Then I got into some debt just trying to pay rent, food, transport.etc and now I'm in my industry I work in, but I work on temporary contracts, the pay is a lot better, but it's hard to know how long I'll be unemployed for between contracts. Once I start moving up the ladder (soon, hopefully) I will be able to afford saving for a raining day and significantly pay off my debts. But right now I'm enjoying life as I never did in the past.

I told you that because circumstances are not the same, so not everyone is able to save 6 months salary. I was good saving 2 grand at uni, which was some student loan and some of my part time wages, but it didn't last as long as I'd hope. Once my debts are cleared then I can start saving for emergency fund, or I might save for a holiday, or both. That's up to me.

dealer_wins

I have always tried to save at least 10% of my net pay every month.

Whether it goes into emergency savings, or long term savings once there is enough in the emergency pot.