What would happen if...? (Future finances)

LilElvis

Petra_70 wrote: »

I am amazed at the amount of people who claim to have a major amount of savings. I mean, to replace the fridge, washing machine, cooker, boiler, and even the car; just like that!

According to many reports, (I have included 4 here,) almost 10 million people are in debt, and struggle to make ends meet from week to week, and live their lives on credit cards. 1000s of payday loans are being taken out every day, and half of UK adults are in so much debt that they can barely cope. Some people even have to resort to going to food banks!

Yet almost everyone one this thread, has a shed load of savings. Seemingly enough to buy a new boiler and a new car. Only 3 or 4 out of about 2 dozen people have said they don't have savings and would struggle.

Something isn't adding up. How come so many people are in debt in this country, with no savings at all? And on here, hardly anyone is in debt? And in addition, they have multiple 1000s of pounds in savings?

http://www.independent.co.uk/money/spend-save/britain-in-debt-half-of-uk-adults-living-on-financial-edge-8742978.html

http://www.bbc.co.uk/news/business-25108891

http://www.theguardian.com/money/2015/jan/03/new-consumer-debt-reaches-7-year-high

http://www.dailymail.co.uk/news/article-2072372/The-10-000-debt-burden-average-family-doesnt-include-1-24trillion-mortgages.html

The question that wasn't asked of responders is their age, which is likely to make a crucial difference. I've already answered the questions and our household is solvent enough to not worry about any of the scenarios. Had you asked me 20 years ago my answers would have been completely different as I was "starting out" - first house purchase and a lodger to help make ends meet, no holidays, no car, no meals out or takeaways and only a small pot of spare cash. Fortunately my parents were great role models when it comes to financial prudence and they gave me a good grounding in prioritising long term goals over short term wants. For me, those relatively few years of frugality have given me long term security.