Does Anyone Not have Savings?

moneyfoolish

bigfreddiel wrote: »

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

Excellent. Nothing wrong with saving if it doesn't restrict your lifestyle. Sadly, it becomes an obsession to some people.

jimjames

Eco_Miser wrote: »

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.

Totally agree. Constantly upgrading to the latest iPhone isn't an essential yet many people seem to put that above having any savings.

atush

Once that pot has become a decent size and cover for exceptional expenditure is established, then payments into a pension plan could be considered.

I disagree, if there is an employers pension with free money from t he employer that should come first (and savings could be started as well with cutting back on fripperies like phone contracts, poncy coffees and the like)

economic

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).

its the poor who waste money like this. thats why they will always remain poor. the rich always look after their money. they are more frugal in some ways then the poor. being rich is as much a mentality thing as how much you earn.

Cotta

From this month onwards I should be in a position with my increased salary and some belt tightening to have a surplus of £600.


I currently have an employer pension scheme, I pay 5% of my salary towards and they contribute 10%.


My mortgage is on 4.5% locked in for another three years.


I assume the emergency fund is my first port of call, it this something to drip into a regular saver account?

Kim_13

Cotta wrote: »

From this month onwards I should be in a position with my increased salary and some belt tightening to have a surplus of £600.


I currently have an employer pension scheme, I pay 5% of my salary towards and they contribute 10%.


My mortgage is on 4.5% locked in for another three years.


I assume the emergency fund is my first port of call, it this something to drip into a regular saver account?

Can be, but if using a Regular Saver for this purpose you'll need to ensure that withdrawals are allowed during the year (in case there is an emergency and you then need to call on the fund.)

The monthly pay in should also be high enough to take however much you think you'll add to the fund per month. If not, one of the current accounts paying interest would be best for the time being.

no1catman

With a regular savings account - you have the ability to reduce the amount going in. Try to avoid a bank run one, they seem to run the just a year, whereas Building Society ones continue. They put discipline into saving.

It's all about the choices we make and the priorities we put on those choices, and how we are brought up - were we told 'no'.

coyrls

economic wrote: »

its the poor who waste money like this. thats why they will always remain poor. the rich always look after their money. they are more frugal in some ways then the poor. being rich is as much a mentality thing as how much you earn.

There are plenty of rich people who:

drive expensive cars, fly business class for holidays and stay in 5 star hotels

and, I would suggest, very few poor people, unless you are going to redefine the meaning of the words.

eskbanker

no1catman wrote: »

With a regular savings account - you have the ability to reduce the amount going in. Try to avoid a bank run one, they seem to run the just a year, whereas Building Society ones continue. They put discipline into saving.

It's all about the choices we make and the priorities we put on those choices, and how we are brought up - were we told 'no'.

The key choice for someone looking at regular savers is: do I want them paying 5/6% for a year (initially) or 2% for more than a year (except a few highly localised offerings). Everyone will have their own rationale but I'd hazard a guess that there will be more on here who favour the higher interest for the shorter period than the lower interest for longer....

tara747

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.

I agree that it's important to enjoy life as well as saving. It's done by prioritising - spending on what makes me happy:

• travelling
• socialising
• good quality food and wine

...and not frittering away money on unimportant stuff:

• 'fast fashion'
• gym subs
• magazines
• takeaway coffees, lunches etc

Those two lists will vary from person to person, each of us needs to figure out what's worth spending money on.


I have over £100k in savings, but I still enjoy life to the full, it can be done

Cotta wrote: »

From this month onwards I should be in a position with my increased salary and some belt tightening to have a surplus of £600.

I currently have an employer pension scheme, I pay 5% of my salary towards and they contribute 10%.

My mortgage is on 4.5% locked in for another three years.

I assume the emergency fund is my first port of call, it this something to drip into a regular saver account?

Well done, saving £600 a month is a great start!


There's a list of the highest-paying accounts on this board, I'd start with that. Fill up the likes of TSB, then start drip-feeding into the regular savers.