Why do people pretend to be "Skint"

corf999

roddydogs wrote: »

As per the title "because its not in my Current Account", when theyve got money in ISAs, Savings acounts, insurance policys (ones that pay out) Stocks & shares, Premium Bonds, etc, etc. But they are "Short this month" because the had a few "Bills" this month (who dosent?) Rant over.:mad:

And why does this make you unhappy? This is effective budgeting.

lippy1923

If you want to look at it that way, why are you not considering their massive mortgage or maybe large loan/credit card debts in their portfolio? Minus these large debts from their savings, premium bonds, s&s etc and they most likely are "skint"

TrustyOven

http://www.financialsamurai.com/the-rise-of-stealth-wealth-guide-to-staying-invisible-from-society-rage/

Addresses some of the issues and reasons, perhaps?

katejo

roddydogs wrote: »

As per the title "because its not in my Current Account", when theyve got money in ISAs, Savings acounts, insurance policys (ones that pay out) Stocks & shares, Premium Bonds, etc, etc. But they are "Short this month" because the had a few "Bills" this month (who dosent?) Rant over.:mad:

Try looking at YNAB. http://www.youneedabudget.com
It is a budgeting method in which all money gets a specific job. Someone might have money in their account but it is being kept for a specific purpose. When i get paid, I leave the money need for bills/food/general day to day costs in my current account and transfer the rest to savings.

colsten

katejo wrote: »

When i get paid, I leave the money need for bills/food/general day to day costs in my current account and transfer the rest to savings.

This sounds as if you have a current account that pays no interest - unless your "savings" account is one or more of the interest paying current accounts? http://www.moneysavingexpert.com/savings/savings-loophole

LiveSimply

I pretend to be skint because it is socially acceptable. Just saying I don't want to spend that amount of money on that thing or with those people is a bit blunt.

HappyMJ

I pretend to be skint despite having access to more than 1 year of salary in cash (equity redraw against house) because if I spent that money every time someone asked me to spend some time with them going out somewhere then I'd genuinely be skint and could become homeless if the worst were to happen. If I were to right now lose my job now I can have my current lifestyle for at least 1 year and possibly a lot more with some forethought. I also have credit cards and loans and somehow the thought of having them makes me think more about saving and paying them off quicker. When I had no outstanding debts I spent quite a bit more money. Although my unsecured debt will be clear in 4 years I'll take out another loan paying of part of the mortgage with the proceeds then scare myself into paying off the unsecured loan as quick as possible. Interest rates are exactly the same and I can pay as much or as little as I want to my mortgage even redrawing each month which is what creates my negative cash flow each month. I spend much more than I earn each month yet my net wealth increases each month. I posted my SOA on here and many posters freaked out thinking it was the end of the world and recommending selling up and renting and DMP's. No chance.

Joe_Bloggs

Equity held in property may he an illusion. If you try to realize it may be less than or make the asking price or exceed expectations. It is not a certain thing.

I also have credit cards and loans and somehow the thought of having them makes me think more about saving and paying them off quicker. When I had no outstanding debts I spent quite a bit more money. Although my unsecured debt will be clear in 4 years I'll take out another loan paying of part of the mortgage with the proceeds then scare myself into paying off the unsecured loan as quick as possible. his is most disturbing:-

Get a plan that makes some sense. Why take a loan out to pay off part of the mortgage ! What are your mortgage details ?

J_B.