Does Anyone Not have Savings?

schiff

jimjames wrote: »

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.

I wasn't ignoring anything. This is someone who is starting to save. With safe investments like the numerous current accounts paying decent interest he can make a good start. Once that pot has become a decent size and cover for exceptional expenditure is established, then payments into a pension plan could be considered. These could be in S&S but because of market fluctuations the funds will have to stay there to see out any storm, and if he hasn't got a decent pot to fall back on, he could have problems. I think the pension provision is some way off.

Ray_Singh-Blue

Cotta wrote: »

Hi All,

It's been a while since I have had any notable savings. Over the past number of years I'm ashamed to say that it's been payday to payday.

This year I have overpaid on my mortgage to the tune of 4k and I've just changed jobs, this now nets me an extra £339 per month.

What I am wondering is have others struggled to build up their savings and what things did you do to get back on top?

Interested in your responses.

Cotta, you need savings. I can't get my head around so many people not having them. You are in a position to save - overpaying the mortgage is good, but not if it means you can't fix your car or travel to see someone close get married in another country.

There have been a couple of times when I have exhausted my savings - such as when buying a house- and I have felt extremely stressed by it.

These days, in my 40s with a teenage family, it would feel crazy not to have a good amount of cash on standby for who-knows-what. Such that I would rather have £20K more of mortgage, to allow me to keep £20K in the bank.

markwilkinson

Cotta wrote: »

Hi All,


It's been a while since I have had any notable savings. Over the past number of years I'm ashamed to say that it's been payday to payday.


This year I have overpaid on my mortgage to the tune of 4k and I've just changed jobs, this now nets me an extra £339 per month.


What I am wondering is have others struggled to build up their savings and what things did you do to get back on top?


Interested in your responses.

I guess there's many out there that don't have any kind of savings. A few months back there was many a suggestion that the average savings was £2k. If that is the average there's at least a few with nothing.

This is one forum operating in a world wide Internet, this one board on a forum that also includes boards focussed on bankruptcy and job seeking - there are many people worse off than many that post in this section.

Start saving again through a monthly saver or something, get back in the habit and consider yourself lucky you are able to, I do.

Pincher

chucknorris wrote: »

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.

https://en.wikipedia.org/wiki/The_Ant_and_the_Grasshopper

"The fable describes how a hungry grasshopper begs for food from an ant when winter comes and is refused."

A potentially difficult dilemma.


In the event of divorce, or being chased by creditors and the HMRC, having assets that they can grab is so annoying. It does fit in with the fast living philosophy of the Grasshopper. Spend it before "they" put a seize order on it.

bigfreddiel

As a student and my early years I never had any savings, now I'm retired I do! Wired innit! Actually it's not, you get older you have everything you wanted, now you just everything you need.

Cheers fj

mgarl10024

Another vote for the emergency fund.

I get tremendous security from the fact that I have enough to cover bills and the mortgage for 6mths if I didn't have work. This was really important when going through redundancies a few years back - there were some people who were really panicking, and my main concern was not financial but more about dusting off the CV and starting the new job hunt.

You can also keep it in high interest current accounts which means that you may even beat your mortgage interest rate (and so be better off).

SailorSam

Walk up and down any High St and see the growing number of payday loan shops, and you can tell that many don't even have enough money to last until the end of the month, so have no chance of saving.

moneyfoolish

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

In reality they may doing just as well or better than you. For many people, enjoying their lives by buying the cars they want, taking lots of holidays and eating out a lot is a lot more attractive than accumulating money! I'm not particularly interested in cars other than having one that doesn't break down and takes me from A to B and I can take or leave holidays but I do like eating out and I am extravagent where my hobbies are concerned. I certainly wouldn't put saving money in front of paying for doing the things in life that make living worthwhile and accumulating huge amounts of money one of those.

Eco_Miser

jondav wrote: »

Personally I would rather be able to keep my bills paid and food on the table today rather than stashing money away "just incase". Of course if you have disposable income then absolutely, save. But not everyone has that luxury.

While bills and food come first (and have to, you're not really saving if you have outstanding debt), saving an emergency fund should come second, before spending on luxuries. Many people seem to put these in the reverse order.

bigfreddiel

moneyfoolish wrote: »

In reality they may doing just as well or better than you. For many people, enjoying their lives by buying the cars they want, taking lots of holidays and eating out a lot is a lot more attractive than accumulating money! I'm not particularly interested in cars other than having one that doesn't break down and takes me from A to B and I can take or leave holidays but I do like eating out and I am extravagent where my hobbies are concerned. I certainly wouldn't put saving money in front of paying for doing the things in life that make living worthwhile and accumulating huge amounts of money one of those.

Absolutely correct, I just bought a really interesting car, just come back from a short holiday a few days ago, the wife just spent the better part of £1,000 on decorating the house, we go out for meals and the pub, in fact we are spending mor now than ever, and oh yes still saving, £2k last month!

So you can save and enjoy yourself, but I've said it before, don't let saving take over your life!

Cheers fj