I have £5000 savings at 35. Is my life over?

Terry_Towelling

aj23 wrote: »

As I said, I didn't have any student loans. I was self-funded. Getting on to people my age think they should get their uni tuition, which they chose to do, for free by taking out a loan in the hope they only have to repay 2/3's back is a different subject altogether, and I fundamentally think that mentality is wrong. If you choose to do something, you should pay, like uni. They've had the tuition, they should pay it in full.

Understood - the moral stance of wanting to pay in full for something you choose to do to better yourself is quite right - even if you do get someone else to do the 'self-funding' part for you.

You weren't under attack before but that may change soon when students from poorer backgrounds whose parents cannot afford to be so generous read your words. I remain neutral.

darkidoe

Terry_Towelling wrote: »

The rent-to-live-at-home issue is an interesting one.

I have a niece who was aghast at the proposal to pay rent. Her attitude was ' You mean you'd charge me to live in my own home?!' To which the response is, 'Well we have to pay to live in our own home, so why shouldn't you?'

Personally, I'd insist on paying rent to my parents and, if they wouldn't take it, I'd feel obliged to contribute to the household in some other way.

Now, you may say that makes me an idiot.......dramatic pause for the shouting to die down.... but I guess I'm just old fashioned.

I do accept, of course, that trying to save up enough to move out is harder these days and, as long as the youngster is obviously saving with a view to moving on in life and not squandering their cash it sounds quite reasonable not to take rent from them.

In Asian cultures, there is less issue of paying rent to live at home. Parents tend to like to continue to live in a close knit family unit, everyone under one roof kind of concept and it would be awkward to pay 'rent' to your parents. But I think to contribute financially to household bills and expenses is a reasonable suggestions without explicitly calling it 'rent', especially if the family is big.

The onus is for the young adult to actively seek to contribute, but also it makes sense to plan to have this discussion as equal adults as much as possible especially if parents are not especially well to do.

aj23_2

Terry_Towelling wrote: »

Understood - the moral stance of wanting to pay in full for something you choose to do to better yourself is quite right - even if you do get someone else to do the 'self-funding' part for you.

You weren't under attack before but that may change soon when students from poorer backgrounds whose parents cannot afford to be so generous read your words. I remain neutral.

Well I don't see why I'd be under attack. If you choose to do something in life, you have to pay for it. Holiday, car, house, new phone, computer etc. Why is university different? It's a choice, it's not compulsory. I don't see the issue in saying that if you want something, like 3 years of further education, you should pay it back in full. I don't see why people who haven't been or have repaid or paid in full should cover other peoples education choice through their taxation.

Students from poorer backgrounds should be the ones who get the loans. It's fundamentally wrong that someone like me should have been approved for loans and grants, but many do. I don't expect the government to fund the education which I have chosen to do. If you go to uni, the professors and staff still need paying, resources still need to be bought, the buildings need to be maintained. Why should the government have to pay the third of loans which is never re-payed from money from other pots to cover these things?

A lot of people my age expect everything for free, to stay in uni until they are 25 and then still expect to get free things without ever having contributed to the system. It relates to the wider issue that too many people go who don't even use the degrees, or told they must go by teachers, like I was. We were all made to apply, even if some didn't want to.

System

aj23 wrote: »

Thanks. I do live with parents.

I had a crisis about not having any money, and I wanted to do something about it.

I really curbed dinners out, drinks out, buying clothes I didn't need, online shopping etc. It's just lifestyle choices.

I opened two regular savers, and very quickly it started to build up. Then a HTB ISA. So three accounts to save in a month. Now a Lifetime ISA. I save about 60-70% of my monthly wage. Plus I contribute into a workplace pension above what I need to.

Leaves me with about £500 to live on, which I use most on bills and petrol etc., and obviously socializing. But I'm saving about £900, so I don't mind that that money gets used. As you can see, I don't even have a high wage, yet I manage to save that much a month and have built it, yet still enjoy myself.

I still go out with friends, but I just don't spend as much. Have one course, not two. Have courses, not three. Use promo vouchers. Don't leave tips. Don't get car washed so much. Don't get haircut every two weeks, go every three. Lots of choices in a short time can save a lot of money.

Yes to the person above, can't take it with you, but that poster probably has a house, or a mortgage. You and I don't. And that's why I'm saving hard. I am happier as a result of being more secure financially.

Thanks for your response. I save similarly to this also. You've said a few times, 'as you can see, I don't earn a lot', I not seen where you've written your earnings anywhere?

System

darkidoe wrote: »

Join the The "Save 12k in 2018" Thread!.

Be accountable and responsible for your spending.
Learn about regular savers.
Try to increase income.

On this all already! But thanks

atush

aj23 wrote: »

But if I have offered and they refused, what do you have to say about that? Like I said, each to their own. They said they don't want or need my money. They said I have a greater need of it because times are harder for people in my age group. Whenever we go out, I usually drive, at my petrol expense because they did for long enough when I was under 17. I often pay for other things too. They've actually said they think it's wrong to take off people's children. Perhaps because my Granddad took my Dad's pay packets off him in the late 60s/early 70s, like his other four siblings, and only given back enough for a bus ticket to get to work, my Dad thinks the opposite of his treatment with me.

My parents put me through two degrees and paid for it. They told me not to get a loan, and that they wanted to pay for it so I wouldn't have debt.

I have my own bills to pay, I don't need to give my parents money to learn how to 'pay my keep'. I repay my credit in full every month and always have done. I know how to handle money and bills.



I've taken my parents away at my expense. I wouldn't phrase it so begrudgingly though.

not begrudgingly, was happy to have him. They have free vacations at our house in the usa, they just have to pay their airfare to get there.

If your parents refuse, find other ways to help. Pay one of the bill's each month for them. Put it in your name and it will help your credit rating for later on. Or pay for holidays as you have, meals out etc.

atush

Terry_Towelling wrote: »

I don't think you are under attack here @aj23.



You are most fortunate to have such generous parents. I hope the degrees have been useful in your career path so far but am still not convinced it's a good idea for parents to pay for education when there is a possibility that this could cost more than repaying the student loans.

My parents were always broke - not quite sure why. We were always the ones who had to 'suck on a piece of damp cloth' because we had no milk, nor sugar, nor tea, nor a cracked filthy cup

At no time did I attack, I expressed hope.

Didn't stop me from getting attacked.

Terry_Towelling

aj23 wrote: »

Well I don't see why I'd be under attack. If you choose to do something in life, you have to pay for it. Holiday, car, house, new phone, computer etc. Why is university different? It's a choice, it's not compulsory. I don't see the issue in saying that if you want something, like 3 years of further education, you should pay it back in full. I don't see why people who haven't been or have repaid or paid in full should cover other peoples education choice through their taxation.

Students from poorer backgrounds should be the ones who get the loans. It's fundamentally wrong that someone like me should have been approved for loans and grants, but many do. I don't expect the government to fund the education which I have chosen to do. If you go to uni, the professors and staff still need paying, resources still need to be bought, the buildings need to be maintained. Why should the government have to pay the third of loans which is never re-payed from money from other pots to cover these things?

You've misunderstood me @aj23. You were talking about the morals of paying for what you use (quite right - agree fully) and then went on to say that you chose to self-fund your education. The point I was making (obviously not very well, it seems) is that you didn't self-fund, your parents funded you and it might seem a bit galling to some to hear you taking the moral high-ground because you come from a better-off family.

And the other point is that taking the loan route and then not having to repay it all might make the whole process more affordable and attainable for those who have no parental funding. I fully understand the moral argument that not paying for what you use is dubious and that perhaps you shouldn't expect the tax-payer to pick up the tab for you - but then, I guess that is no different to the bad old days when the tax-payer footed most of the bill anyway through the grant system.

So, tell me @aj23 if the grant system had still existed (and if the 'means test' meant you qualified for it) would you have used it, or would you still have got your parents to pay for you? And, would you be saying to all those students who did take a grant, that their mentality is wrong because they aren't paying for it themselves?

Just curious

eskbanker

Sweetcake wrote: »

You've said a few times, 'as you can see, I don't earn a lot', I not seen where you've written your earnings anywhere?

From the post you were quoting:

I save about 60-70% of my monthly wage

[...]

I'm saving about £900

Therefore net monthly wage is in circa £1500 territory (without knowing detail of pension contributions being from gross or net pay), i.e. £18K annually.

aj23_2

atush wrote: »

not begrudgingly, was happy to have him. They have free vacations at our house in the usa, they just have to pay their airfare to get there.

If your parents refuse, find other ways to help. Pay one of the bill's each month for them. Put it in your name and it will help your credit rating for later on. Or pay for holidays as you have, meals out etc.

I've already said I help in other ways, didn't you read what I said in response? I don't need to be told I should pay one of their bills each month. I have my own credit card for my own use, building a credit rating.

Like I keep saying, each to their own.