Savings ... something of the past?

Thrugelmir

Why are savings something of the past? With 36% of people having no savings there's potentially many that are going to experience stressful and unhappy periods during their lives. As life is a roller coaster that will never change.

ging84

I wonder what that 30% with saving of £10k+ drops to when you exclude those who are saving to buy a house and will likely then join the 36% with no savings for atleast the next decade if they finally reach thier target.

westernpromise

ging84 wrote: »

I wonder what that 30% with saving of £10k+ drops to when you exclude those who are saving to buy a house and will likely then join the 36% with no savings for atleast the next decade if they finally reach thier target.

They're still better off than someone with a small savings stash but an unfunded indefinite rental liability.

lippy1923

I would cry if I had no savings. I'm quite shocked at the large amount who have absolutely nothing :eek:

Thrugelmir

westernpromise wrote: »

They're still better off than someone with a small savings stash but an unfunded indefinite rental liability.

Them there's a multitude of BTL owners in extremely dangerous territory. I'd prefer the rental liability to a mortgage one. As it least I'd keep my savings.

What's the critical threshold, supposedly a 2.5% increase in interest rates. That's only a base rate of 3%. Must be a lot of people with little financial naus.

wotsthat

Thrugelmir wrote: »

Them there's a multitude of BTL owners in extremely dangerous territory. I'd prefer the rental liability to a mortgage one. As it least I'd keep my savings.

What's the critical threshold, supposedly a 2.5% increase in interest rates. That's only a base rate of 3%. Must be a lot of people with little financial naus.

I think I'd prefer fewer savings and zero rental liability with a certainty of a mortgage free future too.

As for BTL as a form of savings why worry? It's an investment that's always been / is really easy to avoid. If returns go negative and the owners weren't sufficiently diversified that's their look out.

Carl31

wymondham wrote: »

Got some interesting info on savings today. This tagged with the current poor rates and likelihood of savings returning even less soon, is saving in the traditional sense outdated?

"Around 9.61m (36%) households have no savings, while a further 3.47m (13%) have under £1,500. 71% have less than £10,000 in savings."

these numbers have always been banded around, pretty much at the same levels

Its easily true though, if you look at your immediate social circles, I have friends that are low earners who could never save and live paycheck to paycheck, others that could, yet just spend as they are not savvy, and then others that can save something out of nothing

what do people need savings for though? if you are saving for something, then fair enough, but to have it sitting in the bank doing nothing seems a bit pointless

kinger101

Carl31 wrote: »

what do people need savings for though? if you are saving for something, then fair enough, but to have it sitting in the bank doing nothing seems a bit pointless

Deposit for a house
A car
A trip round the world
Not having to rely solely on benefits if they lose their job
A wedding
Retirement
A major repair on their home
Not having to soil their pants when their bank statement arrives

I wonder how many with no savings are purchasing on credit.

mwpt

Comrades, you are being overly critical. These people with no savings are simply doing their social duty by using credit to expand the money supply, consumerism and everlasting growth. For the glorious good. Comrade Osborne is proud of them.

chucknorris

lippy1923 wrote: »

I would cry if I had no savings. I'm quite shocked at the large amount who have absolutely nothing :eek:

It is even worse when you think of the number of people who earn very good incomes and still they neither invest or save. I was quite surprised when a few of my friends said that they had no savings (they also meant no investments either).