Does Anyone Not have Savings?

atush

jimjames wrote: »

Aren't the stats something like 40% of population have no savings and 70% have under £2000?

I'd definitely keep some savings as instant access before paying off mortgage. Even if the mortgage money is accessible it will take a week or so before the money is back in your account in my experience.

I agree, an emergency savings pot, and joining the employers pension both take precedence over paying off the mtg early.

then after that, spare cash could be better off in a S&S isa over overpaying mtg if your mtg rate is low.

Ray_Singh-Blue

Percentage of households by amounts of savings and investments, 2012/13

No savings = 35%
Less than £1500= 13%
£1500 but less than £3000 = 7%
£3000 but less than £8000 = 13%
£8000 but less than £10 000 = 3%
£10 000 but less than £16 000 =7%
£16 000 but less than £20 000 =3%
£20 000 or more =20%

Source: DWP, 2014, Table 2.8 Department for Work and Pensions (2014) Family Resources Survey, 2012/13 [Online]. Available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325491/family-resources-survey-statistics-2012-2013.pdf

schiff

atush wrote: »

I agree, an emergency savings pot, and joining the employers pension both take precedence over paying off the mtg early.

then after that, spare cash could be better off in a S&S isa over overpaying mtg if your mtg rate is low.

I'm amazed at this (second) suggestion of a S&S ISA for someone who admits to only wanting to start saving. Any money in S&S can never be considered immune from market fluctuations and what happens if the OP wants the money after a 25% fall in the value of his S&S? Which can happen!

PasturesNew

Many people don't have savings.

For some it's because they see money coming in and they spend it all. Give them more they'll spend more.

For others it's because the money coming in is very close to the bone of actual basic/frugal lifestyle, so they have nothing left over and the slightest unexpected eventuality tips them over the edge and wipes out any savings they did have.

I've spent my life never having savings. One income - and housing/transport to work's pretty much taken up most of that income over the years. Once the basic bills were paid, roof over my head, car on the road to get to/from work I used to have about £50/month to feed myself on and deal with any unexpected eventualities.... it's easy to not have savings.

Question is ... if something bad does happen, you have to evaluate if you can live with the consequences, or somehow dig yourself out of the hole.

I even gave up a job once as I knew I could afford to get there/back, but I could never have afforded to fix the car if it broke down en-route, which'd be a disaster.

weenie15

schiff wrote: »

I'm amazed at this (second) suggestion of a S&S ISA for someone who admits to only wanting to start saving. Any money in S&S can never be considered immune from market fluctuations and what happens if the OP wants the money after a 25% fall in the value of his S&S? Which can happen!

Don't think there's anything wrong with the suggestion, which was "spare cash could be better off in a S&S isa"

Markets can go up as well as fall and if the OP doesn't need the money in the short term, then investing is likely to be better than overpaying mortgage.

jimjames

schiff wrote: »

I'm amazed at this (second) suggestion of a S&S ISA for someone who admits to only wanting to start saving. Any money in S&S can never be considered immune from market fluctuations and what happens if the OP wants the money after a 25% fall in the value of his S&S? Which can happen!

You seem to be ignoring the context of the reply which was "after emergency savings and pension".

In my view atush's suggestion was spot on, investing could be a better option than overpaying mortgage. You still need emergency savings first though because you don't want to be in the position of needing to sell up investments in a crash.

jondav wrote: »

We do hope to start a savings plan soon, but this will be very small amounts because of financial commitments. As they say, "every little helps"

I'm not sure if it was just your terminology and not really what you mean, but you don't need to start a formal savings plan. You can just have an account that you put spare money in - often putting money in on pay day can work well because it's then out of reach.

tara747

In answer to the OP (hi Cotta!), there are lots of people with no savings, facing problems like this: https://forums.moneysavingexpert.com/discussion/5520331

jimjames wrote: »

Aren't the stats something like 40% of population have no savings and 70% have under £2000?

There's no shame in it at all, as others have said, and it's good that you're considering saving your extra new income each month

Definitely build up an emergency fund first. Then you have a financial cushion.

Check out Dave Ramsey's programmes, he is incredibly motivating.
http://www.daveramsey.com/home/


Baby steps:
https://www.daveramsey.com/baby-steps/




You will love saving

chucknorris

I don't have much in savings, but I'm not the target of this question (as I have quite a lot in investments as opposed to 'savings'). But a few years back in the 2007/8 downturn when I did have savings, I was asking friends what were they doing about managing their savings (because banks were in danger of going under and only £50k was protected), I was really surprised how many of them had none, and I am talking about people who drive expensive cars, fly business class for holidays and stay in 5 star hotels (we don't do any of those).

bigfreddiel

chucknorris wrote: »

I don't have much in savings, but I'm not the target of this question (as I have quite a lot in investments as opposed to 'savings'). But a few years back in the 2007/8 downturn when I did have savings, I was asking friends what were they doing about managing their savings (because banks were in danger of going under and only £50k was protected), I was really surprised how many of them had none, and I am talking about people who drive expensive cars, fly business class for holidays and stay in 5 star hotels (we don't do any of those).

That's why you have savings and your friends don't

I too see people in their brand new cars, loads of holidays, eating out lots, and your immediate thought is 'aren't they doing well!'

In reality, they are t as well of as you and I, it's just a perception.

Cheers fj

chucknorris

bigfreddiel wrote: »

That's why you have savings and your friends don't

I too see people in their brand new cars, loads of holidays, eating out lots, and your immediate thought is 'aren't they doing well!'

In reality, they are t as well of as you and I, it's just a perception.

Cheers fj

Yes I know that, but they are good friends so it saddened me to learn that they were not doing as well as I had thought.