MSE News: Savings in crisis

A_Flock_Of_Sheep

Everyone just needs to withdraw their savings, blow it all on luxuries and enjoy life while they are alive and then the dire savings rate will mean nothing to folk. Im now at the stage of thinking what's the point. I mean why do you all have this money amassed? Do you just like to log in and see the numbers and think - ooooh that's nice - when in reality you could be enjoying yourself. What's the point of haveing £60,000 spread across 123 accounts when all it is is £60,000 sitting there doing nothing for you but attracting a few quid extra a month. Think where 60 grand could take you and the experiences you could have with it...

jimjames

A_Flock_Of_Sheep wrote: »

Everyone just needs to withdraw their savings, blow it all on luxuries and enjoy life while they are alive and then the dire savings rate will mean nothing to folk. Im now at the stage of thinking what's the point. I mean why do you all have this money amassed? Do you just like to log in and see the numbers and think - ooooh that's nice - when in reality you could be enjoying yourself. What's the point of haveing £60,000 spread across 123 accounts when all it is is £60,000 sitting there doing nothing for you but attracting a few quid extra a month. Think where 60 grand could take you and the experiences you could have with it...

No, I think some of these. That's great I could pay my mortgage off completely if I wanted. It means I could be made redundant and not worry. It means I can pay for treatment privately if I desperately needed something not available on NHS.

Freedom, essentially as a few said on another thread. Having no savings is not an enjoyable experience. I'd wager that if you ask those with no money to pay for repairs to their car, enjoyable wouldn't be the first word they used.

But on the other hand I don't have £60k in 123 accounts, I have investments and those are doing just fine. Ups and downs along the way but the long term trend is the right direction.

Pincher

Assuming the average exchange rate was GBP1=USD1.6, and it's now GBP1=USD1.22, my sterling is now down by 23%!

Last year I was getting GBP1=JPY185, now it's GBP1=JPY127!

Forget the interest rate. Even if you get 10% interest, you are still losing money.

Looks like I will have to put on a dress, lead the country, declare war on some country, and shake the U.K. out of its decline.
Just so I can get my money back.

jimjames

A_Flock_Of_Sheep wrote: »

. Im now at the stage of thinking what's the point.

Almost on cue from my previous post I saw this on the motoring board.

https://forums.moneysavingexpert.com/discussion/5543435

I have a payday loan repayment to make, rent to pay which is already court ordered payments and we obviously NEED to buy food.

Unable to pay the cost of recovery so now being hit for every day it remains in storage. Not good situation to be stuck in. Is it really a good choice to not have savings if you have the option?

jamesd

A_Flock_Of_Sheep wrote: »

I mean why do you all have this money amassed?

Knowing I don't have to worry about losing my job or could pay off my mortgage within a couple of weeks if I wanted to is nice.

A_Flock_Of_Sheep wrote: »

What's the point of haveing £60,000 spread across 123 accounts when all it is is £60,000 sitting there doing nothing for you but attracting a few quid extra a month. Think where 60 grand could take you and the experiences you could have with it...

I'd be getting more like £600 a month on that via P2P investing, before possible bad debt on the secured lending involved. That £7,2000 a year will pay for a fair bit of experience, without the guarantee of the capital going away that you get if you spend the capital.

A_Flock_Of_Sheep

jamesd wrote: »

Knowing I don't have to worry about losing my job

Isn't that what the Dole office is for? Money for those who have lost their jobs or don't have one?

bowlhead99

A_Flock_Of_Sheep wrote: »

Isn't that what the Dole office is for? Money for those who have lost their jobs or don't have one?

Most people don't want to have to rely on the relatively small amount of money the government will hand out to someone without a job. That is why they get jobs in the first place.

So, they would be distressed if their personal income was cut to hand-out level and didn't have any of their own money stored up that they could spend on their personal needs and wants.

Ray_Singh-Blue

Pincher wrote: »

Last year I was getting GBP1=JPY185, now it's GBP1=JPY127!

Forget the interest rate. Even if you get 10% interest, you are still losing money.

Only if sterling is still falling. Is your view that this is likely?

jimjames

A_Flock_Of_Sheep wrote: »

Isn't that what the Dole office is for? Money for those who have lost their jobs or don't have one?

How does that pay your mortgage? Or car?

I thought a few months ago you were all gung-ho about building up investment portfolio? What's happened?

Glen_Clark

A_Flock_Of_Sheep wrote: »

Isn't that what the Dole office is for? Money for those who have lost their jobs or don't have one?

Look on the benefits forum. Benefits have to cover Britain's inflated housing costs wheras wages don't. So some are better off on benefits than working. But you can only be sure of help if you have got young kids.Without kids you are in trouble, and single men most likely to end up homeless.
Some take advantage. A family with 2 kids can get an increase in benefits by pretending to be separated with one kid each, as they will both be guaranteed housing and benefits with a child. Rent is now paid to the claimant rather than the landlord because it absolves the DWP of the responsibility of finding accommodation. So the claimant blows the rent on fripperies, knowing they will be rehoused straightaway after eviction for rent arrears as long as they have dependent kids.
Having no savings may be an advantage to those in a position to milk the system. But for most of us it isn't.